When providing advice on whether to move pension contracts, from one provider to another perhaps, a truly independent financial planner will have as his number one concern two questions:
- How much will it cost my client to make changes, versus staying where they are?
- If there is a cost, is it worth it?
Given that pensions are tax-effective vehicles for investments, and that investments all grow at different rates – we can see that we need a way of stripping out investment performance, and assessing the viability of change on the basis of what it costs: charges.
Selectapension works with the data entered by the adviser, obtained from the relevant providers, to provide an independent analysis of the cash impact of making changes on the basis of comparing charges only, and assuming performance is at set levels to do this.
Therefore it uses complex data on the charging structures of various contracts to assess what the value of a client’s pension might be if, say, investments across all pensions grew at say 5% per annum until retirement. Obviously this situation is a fiction, but it helps to illustrate the effect of charges of the different contracts.
Using this information, and the analysis of features and underlying investments via other tools, the adviser can use his skill and experience to recommend a course of action best for each individual client.
Contact Us Now to benefit from this advanced research into the cost of any pension changes, and for personalised advice on the best way forward for your retirement planning.