Sustainable Ownership blogs

<div><p>No matter how clued-up financially we think we are, many of us could benefit from professional, financial advice at times.</p><p><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">But, in an uncertain financial world that often appears to be full of crooks, scammers and people posing as experts, it can be difficult to tell the good guys from the bad guys – never mind finding a genuine financial adviser who’s perfect for our needs.&nbsp;&nbsp;</span><br></p></div><div><p>So, to help you decide, we’re suggesting 10 questions that you should ask a financial adviser BEFORE you sign them up. Their answers should make it easier for you to choose a trustworthy adviser who is best suited to you.</p><p><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"><strong>1. Who are you regulated by?&nbsp;</strong>&nbsp;</span><br></p></div><div><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">All UK independent financial advisers should be regulated by the Financial Conduct Authority (FCA). You should always double check them and their firm on the FCA website <a href="https://www.fca.org.uk/" target="_blank" data-sf-ec-immutable="">here</a> and not just via the details or website the adviser gives you. Using an FCA regulated adviser means they have been professionally assessed and that you will be protected by UK law if anything goes wrong.&nbsp;&nbsp;</span><br></div><div><br></div><div><strong>2. What qualifications do you have and are you authorised by the FCA to provide financial advice?&nbsp;</strong></div><div><br></div><div>Proven qualifications will show the adviser is legitimate and competent, and that they have the specialist knowledge that you may need. Financial advisers must be qualified at a minimum QCF (Qualifications and Credit Framework) Level 4 or above (equivalent to the first year of a university degree). They also need to have an annual Statement of Professional Standing (SPS). You can also call the FCA on 0800 111 6768 to double check they are actually authorised to give you financial advice.</div><div><br></div><div><p><strong>3. How much do you charge for providing advice and when do I pay?&nbsp;</strong></p><p><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">A financial adviser has a legal duty to tell you how they charge, and how much, before they start working with you. Some advisers will offer a free initial consultation, but others charge.&nbsp; A ‘suitability report’ - a document where some advisers will make their financial recommendations for you - is usually chargeable, so find out if this adviser provides one, and&nbsp; how much this would be, beforehand.&nbsp;&nbsp;</span><br></p></div><div><p>Some advisers charge hourly, others charge a fixed fee or percentage of the value of your pension, or it can be deducted from your ongoing investments.&nbsp; It also depends on the service you want, but it should be agreed in advance. Advisers should not be paid commission from your investment by product providers.&nbsp;</p><p><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"><strong>4. What specific financial services do you offer?&nbsp;</strong></span><br></p></div><div>Look for an adviser with the proven knowledge, qualifications and experience in the areas where you need help.&nbsp; Some advisers will just focus in certain fields, such as investments and taxes, while others are experienced in pensions, retirement planning, or in complete financial plans, where all your financial needs are covered. Most advisers also offer an ongoing service which should include a regular meeting and review of your investments.</div><div><br></div><div><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"><strong>5. How independent are you?&nbsp;</strong></span><br></div><div><br></div><div>To be called “independent”, a financial adviser must offer a range of products and providers from across the whole market and offer unrestricted and impartial advice. An adviser is called ‘restricted’ if they are only permitted to recommend certain types of investment products from a limited number of providers.&nbsp; A truly independent adviser will have access to a much broader range of products.</div><div><br></div><div><strong>6. What experience do you have advising people in my particular situation?&nbsp;</strong></div><div><br></div><div>You need to make sure this is not the first time the adviser is dealing with someone in your situation. If they have worked with people like you regularly, and can give you some examples, that’s ideal. Remember they can only answer this accurately if they know enough about your circumstances and what you’re looking for.&nbsp;</div><div><br></div><div><strong>7. How would an ongoing service work?&nbsp;</strong></div><div><br></div><div>As well as providing a one-off recommendation, some advisers offer an ongoing service.&nbsp;<span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">This might include an annual review to check the value of your investments and to consider possible changes. If you decide this arrangement is suitable for you, you should establish how you would work together, and what it will cost you.&nbsp;</span></div><div><br></div><div><strong>8. What is your attitude to risk?</strong>&nbsp;</div><div><br></div><div><p>You should find out if the investments or actions this financial adviser recommends for you, are suitable for your ‘risk profile’.&nbsp; The adviser should ask you questions beforehand about your own attitude to risk and how long you wish to invest for. The investments chosen for your financial plan should be carefully selected and discussed with you, so they suit your own personal needs.</p><p><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"><strong>9. Would I work just with you, or with a team?&nbsp;</strong></span><br></p></div><div><p>Many financial advisers will remain your point of contact throughout. However, advisers who work for large organisations may sometimes get a colleague to deal with some of their work. You need to know what to expect, and decide if this suits you.</p><p><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"><strong>10. How would I receive the advice?&nbsp;</strong></span><br></p></div><div><p>Ask if the potential advice will be given face to face, on the phone, via email, via report or through an online portal.&nbsp; Find out if you can choose one way over another and if there are different prices for each.</p><p>Once you've received answers to all of these questions, and checked out any credentials, you should be able to tell if your potential adviser is reliable, trustworthy and a perfect fit for your needs, or whether you should start searching again.</p><p><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">&nbsp;</span></p><p><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Liverpool Victoria (LV) has been chosen as the official partner to give our members financial advice and has specific knowledge on the Scheme.&nbsp; You can contact LV on 0800 023 4187.&nbsp;</span><br></p></div><div><p>But you are still free to choose your own Independent Financial Adviser (IFA). You can find an IFA in your area at <a href="https://www.unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">unbiased.co.uk</a>.&nbsp;</p><p><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">See more information on getting financial advice in our website blog ‘</span> <a href="/knowledge-hub/news-and-views/blog/rps-blog/2021/07/19/who-needs-advice-anyway">Who needs advice anyway?</a><span style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">’</span></p></div>

<p>When the word ‘pension’ is mentioned, people’s faces often say it all, from screwed-up expressions to looks of confusion. But these are justified - there is so much pension misinformation and complicated jargon that many can be put off by before they’ve even started.&nbsp;<br><br>But saving for your pension doesn’t have to be complicated at all. We have lots of tools and information available so you can navigate your pension with ease and relax knowing that you’ve got that part of life covered.&nbsp;<br><br>Before we tell you more about what is available to you as an RPS member, let’s debunk some pension myths that are out there.&nbsp;<br><br></p><h2>Myth — All pension schemes are the same&nbsp;</h2><p>Although the end goal for all schemes is to help you save money for when you retire, there are different types of pension arrangement available. <br><br>As of 2020, The Railways Pension Scheme had over 347,000 active and retired members and provides pensions for 147 companies. Commonly known as the RPS, it is one of the UK’s largest pension arrangements and paid out £1,191m in benefits at the end of 2020.&nbsp;<br><br>Advantages of the RPS include:<br></p><ul><li>Contributions are made by both members and their employer and invested into pooled investment funds, which mean they benefit from economies of scale in terms of management costs and access to a wide range of investments. However, the assets for each section are separately identifiable</li><li>There is a single Trustee that oversees investments management and governance</li><li>Movement of employees between participating rail companies is simplified, and it may be possible to change employer while staying in the Scheme. You can check this with RPMI, the pensions administrator, by emailing <a href="mailto:csu@railpen.com">csu@railpen.com</a>, or you can phone the Helpline on 0800 012 1117</li></ul><p>The RPS is open to all eligible rail employees and those who have a legal right to join.<br><br></p><h2>Myth — The State Pension alone is enough</h2><p>At the time this article is published, the full State Pension is £179.60 a week, however the actual amount you get depends on your National Insurance record – you’ll usually need to have 10 qualifying years on your NI record to get any of the State Pension. <br><br>You’ll also only be able to start claiming your State Pension when you reach your State Pension age. The Government is gradually increasing State Pension age and is currently 66 but set to increase to 67 by 2028. <br><br>So it’s important to think about whether this is enough for your future plans. Life expectancy is ever-increasing so if you don’t want to compromise your current lifestyle and salary, taking an interest in your pension planning is a great way to ensure you’re prepared for the future.&nbsp;<br><br></p><h2>Myth — Pensions are difficult to manage and too complicated&nbsp;</h2><p>Pensions can seem daunting, but on the RPS website we have lots of helpful articles, tools, and information to help you, wherever you are on your pension journey. <br><br>Our <a href="AE2AAFE8-1836-4E1F-92C6-5F79EB807681">FAQs section</a> answers everything from how a pension works and who looks after the money you save to paying extra and investment funds. <br><br>There are also plenty of <a href="D74B6C1C-A60C-4811-A066-F5D3959845F5">videos</a> available that cover <a href="B5339AA3-CE53-4CD9-AF71-0F28EB46AC42">where to start</a> as well as <a href="C922E3E9-BC84-4688-82A4-69419EF61481">tax and other complex pension topics</a> in a way that may be easier to digest. Make sure to register and/or log into your myRPS account today so you can take advantage of our:<br></p><ul><li>Pension Planner (for active members of the defined benefit sections) – to show what your annual income could be when you stop work</li><li>Retirement Modeller (for IWDC members) – also to show what your annual income could be when you stop work</li></ul><p>By <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">using your myRPS account</a>, you can also request estimates of your retirement benefits, nominate those you love so the Trustee knows who you want your money to go to, and ask us a question via the Virtual Assistant.<br></p><ul></ul><h2><br>Myth — If you've lost track of your pension, it's gone forever&nbsp;</h2><p>When you change your place of work, it’s likely that you will be enrolled into a new works pension scheme. This often means that you end up with lots of different pension pots if you move from job to job. <br><br>If you’ve paid into a pension in any of your previous jobs, you can use the <a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">Pensions Tracing Service</a> to find details about your own workplace or personal pension scheme and contact details. You can find out the value of your pots by contacting the pension provider.</p><p>If you can’t remember who your pension provider is and you’re trying to trace a workplace pension, you can also contact your former employer and they should be able to tell you who the provider is.<br><br></p><h2>Myth — It's too late to start&nbsp;</h2><p>Not true! Of course, the earlier you start saving, the easier putting together a decent-sized pension pot can be, but it’s never too late to start saving for the future. Make sure to use our <a href="9701C5A0-2465-483D-ADD4-BB6EC70DFF22">retirement budgeting calculator</a>&nbsp;to estimate how much you may need for the lifestyle you want. The figures are only a guideline so please ask for financial advice via the details below if you need it.&nbsp;<br></p><p><em><br>Neither your pensions administrator, RPMI, or your employer can offer advice. Liverpool Victoria (LV) has been chosen as the official partner to give RPS members access to financial advice. LV can be contacted on 0800 023 4187. This service is authorised and regulated by the Financial Conduct Authority.<br></em> <em style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"><br>You can also find an Independent Financial Adviser in your area on the <a href="https://www.unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">Unbiased website</a>.&nbsp;</em><br></p>