Let’s face it, one of the worries people have when considering obtaining financial advice is how much it will cost, and whether it’ll be proportionate to the pot of money we have.
The Chancellor, Phillip Hammond, announced back in November that an allowance would be provided to allow individuals to withdraw funds from their pension to pay for the cost of obtaining financial advice. Coming into force in April, the scheme allows you to make £500 withdrawals, up to 3 times (but only once in a tax year), from your pension pot, to help pay for financial advice on pensions and retirement. The Government hopes that this will make financial advice more affordable and encourage us to consider taking advice to plan for our retirements. There is no minimum pension pot size before funds can be withdrawn for pensions and retirement advice, and the funds can be withdrawn at any stage prior to retirement.
However, New Model Adviser caution that by restricting the amount that can be taken out to £500 over 3 separate tax years, consumers run the risk that a full and comprehensive financial review won’t be possible. The Government acknowledge this but have also advised that they do not wish to deter savers from obtaining financial advice if fee levels are too high.
Have you already obtained financial advice? Are you considering obtaining financial advice to help plan for your retirement? How much would you be willing to pay for financial advice? We’d love to hear from you. Feel free to leave a reply below.