Advice – Focus Mag (original) (raw)

Pension is one topic most people get uncomfortable with when discussing their retirement plans. Moreover, most people are more confident in choosing general insurance products and savings over pension products. Are you struggling to decide whether or not you need a financial adviser for your pension? Here’s a spoiler, the question is not really “if” you need one but “when.”

It is why many are hiring financial advisers to help with their pensions. To help you decide when to hire a financial adviser, here are some things you should know.

Why do you need a financial adviser for your pension?

You need to hire a professional to get pension advice Kent especially for this living in Kent for local situations when it is required by law. There are also cases when it is up to you to ask a financial adviser for help.

To explain it better, here are some cases when hiring a financial adviser for pension is required by law:

You are going to cash in your pension

The law requires people planning to cash in a definite benefit pension to seek financial advice. It is regardless of the amount in your plan. Because the guaranteed income provided by such final salary schemes is much valued, cashing in this form of pension is probably not wise. You should seek financial advice when you are planning to cash over a £30,000 defined contribution pension.

You are transferring your pension

A financial adviser is also necessary when you’re about to transfer a defined benefit pension to a defined contribution pension more than £30,000. It is mandated by the Financial Conduct Authority to prevent people from making wrong financial decisions in risky and complex areas. The financial adviser will handle the liability and risk of the pension transfer for you.

Should I ask for financial advice for managing my pension?

It’s up to you to seek financial advice or go DIY in managing your pension. However, you might need to ask a financial expert for advice if you choose a self-invested personal pension. A financial adviser can help you grow your pension faster and choose the best funds with excellent security. They can do the following:

Do you need a financial adviser to access regular pension income?

Consulting a financial adviser when accessing your pension is not a legal requirement. However, it might be a critical period wherein you must seek financial advice from a professional. You have to be prudent at this point in your life because your decisions can affect you for the succeeding 20 to 30 years.

Conclusion

To sum it up, there are a lot of advantages to hiring a financial adviser for your pension. Whether it is legally required or your personal choice to hire one, it is always wise to seek financial advice from a professional.

A reliable accountant can help your business grow and save time, while a bad-performing one could cost you money. That’s why choosing the right one is a crucial decision you have to make. However, with so many candidates to choose from, it is not going to be an easy task. Thus, it helps to ask some questions or consider some essential factors when selecting an accountant.

Narrow down your business’s needs

Decide on the services you want from an accountant by narrowing down your business needs. For example, do you want the accountant to do all the accounting services and payroll management? Do you need assistance with your taxes, tracking your finances or with your daily activities?

Do your research

Are you looking to outsource accounting services from firms with London-based accountants or hire accountants to be a permanent part of your team? Remember to check their reviews, know their pricing, or compare a couple of companies or candidates.

Ask for recommendations

Your fellow business owners in the area may recommend good accountants to help you with your finances. Whether you need a certified or licensed one or a bookkeeper, it pays to get recommendations. This way, you’ll know how that person works or what level of experience he has.

Set up an appointment

Meet with the candidate to communicate what you need and how he can help you. Know what their level of experience is with your nature of business. Ask about the services that the accounting firm or candidate offers. Most of them offer tax and auditing work, so ask if the service includes bookkeeping, estate planning, management consulting, or whatever is crucial for your industry.

Make sure you’re a good match

You need to be compatible with your accountant, who will act as your business partner. If you’re dealing with an accounting firm, meet with the accountant who will be handling your business. Ask how they take situations that may be relevant to you. Listen carefully and decide if that is how you want your accountant to handle your affairs. It does not necessarily mean that you want your accountant to have the same approach as you have. What matters is that you are comfortable with how he does things.

Determine the billing structure

Ask about the fees upfront. Most firms charge by the hour, while others charge per service or a monthly retainer. Some have additional charges for specialized tasks.

Conclusion

It is beneficial to have a checklist or guide when choosing an accountant to cover the most critical steps of the selection process. Once you have made your choice, write out the agreement terms in an engagement letter. It should include the details of statements and returns to be prepared and the fees. This ensures you have the same expectations. Do your part by noting down, for example, the details of all your checks or receipts. The better you do this, the less time your accountant has to work.