What questions should I ask a financial advisor in a first meeting? STEVE WEBB responds

I intend to arrange a meeting with a financial advisor. I still haven’t received my private pension.

The financial advisor will change me, I think 0.75 percent of the pension value, which I can understand.

I’m going to choose for a face to face meeting. What do I need to ask you?

I know everyone’s case is different, but can you give me a basic overview of what I need to ask you please?

The financial advisor also says they can offer me ongoing help every year. Again, it is a percentage of what the pension is worth.

Can you tell me what I should think about this and if I need it? For me this would equate to thousands of pounds a year.

They suggested I would need an accountant to help me fill out the tax forms, but that is not included in the current fee, so I may have to find one separately.

SCROLL DOWN TO FIND OUT HOW TO ASK STEVE HIS PENSION QUESTION

Do you have a question for Steve Webb? Scroll down to find out how to contact you.

Steve Webb responds: High-quality financial advice can be a good investment and often pays for itself many times over through improved financial results and greater peace of mind.

But it can be difficult to find the right advisor and not all advisors are of the highest quality.

Therefore, I will consider how to find an advisor in the first place and what to ask at your first meeting.

If you simply type “find financial advisor” into an Internet search engine, the top “results” are likely to be paid ads.

But just because someone paid their way to the top doesn’t automatically mean they’re a good consulting firm.

If you go to the government’s MoneyHelper site You can find information about types of advisors and also some suggestions on how to find one.

MoneyHelper has its own ‘Retirement Adviser Directory’, but this simply gives you a list of advisers close to your postcode.

Unfortunately, this gives you no idea who would be best in your circumstances.

There are several other advisor directory services including Impartial, he Personal Finance Societyeither Endorsed, although in some cases advice companies will have paid to appear on these sites.

You can also check online consumer ratings of advisors on sites like TrustPilot or ask friends and family to see if they have used the services of an advisor they would recommend.

However, as you rightly say, there is no substitute for a face-to-face meeting when deciding if an advisor is right for you.

As for what to ask in a first meeting, a key point is that you don’t have to go to the first advisor you see.

Most advisors should be willing to have a free introductory conversation and, if possible, you should try to see a couple of advisors before deciding who to go with.

During these conversations, take note of the questions the advisor asks you.

Ideally, their priority should be getting to know you and what’s important to you. Good financial advice should be tailored to each individual and if they don’t take the time to get to know you, how will they give you good advice?

Second, don’t be afraid to ask questions. Pensions and retirement is an area that can be complex and jargon-heavy.

A good advisor will welcome your questions and answer them clearly. If you don’t understand what your advisor is saying or have a hard time asking questions, he or she is probably not the right person for you.

After a first meeting you should have a clear idea of ​​what services the advisor will provide you and how much you will have to pay.

You should know how much you have to pay upfront for initial advice and how much you might pay on an ongoing basis.

In your question, you suggested that you weren’t 100 percent sure what you would pay and you should definitely clarify this before committing to anything.

If there are ongoing charges, you need to be clear about what you will get in return. The advisor should not simply take a portion of his pension fund each year without doing something about it.

You wouldn’t think of spending thousands of pounds on a new car or bathroom without shopping around and being clear about what you’re getting for that money, and it should be no different with financial advice.

Some other topics to cover might include how the advisory firm typically invests its clients’ money and what qualifications the advisor has.

For example, some advisors might specialize in particular areas (such as members of the Society of Later Life Advisors) or have taken additional exams or qualifications.

Finally, if, after having a fair trial with an advisor, you decide that they are not right for you, it should be easy to end the relationship.

Therefore, before closing any deal, you should be clear about whether there will be charges or penalties if you change your mind at a later stage.

I am grateful to Claire Walsh, Chartered Financial Planner at Dartington Wealth Management, for her helpful insights in answering this reader’s question, but all opinions expressed are my own.