What pension size makes financial advice worthwhile?
There is no single pension value at which advice suddenly becomes worthwhile. The decision depends on complexity, consequences and the cost of the service.
There is no universal minimum
Different advice firms have different minimum client sizes and fee structures. The same pension value can justify advice for one person and not another.
Complexity can matter more than value
Several pensions, retirement income choices, a defined benefit scheme, tax questions or a spouse's finances can make the planning more complex even when the pension is not exceptionally large.
Compare the fee with the pension value
A minimum advice fee can become expensive as a percentage of a smaller pension. Ask for the cash amount and whether a one-off retirement project is available.
Use free guidance where it fits
Pension Wise and MoneyHelper can help explain retirement options. Regulated advice is different because it makes a personalised recommendation.