Step 1: Establish what type of advice you need
Pension advice covers a very wide range of situations, and different advisers specialise in different areas:
- Accumulation advice: Building pension wealth during your working life — contribution levels, investment choices, pension consolidation
- Pre-retirement planning: Preparing for retirement in the 5–10 years before you stop work
- Drawdown and decumulation: How to access your pension tax-efficiently in retirement
- Defined benefit pension transfers: Specialist advice on transferring final salary pensions (requires specific qualifications)
- Annuity advice: Comparing annuity products for guaranteed retirement income
Be clear about which area you need help with before comparing advisers — an excellent drawdown specialist may not be the right choice for DB transfer advice.
Step 2: Check qualifications and independence
The minimum qualification for a pension adviser is a Level 4 Diploma in Regulated Financial Planning. For defined benefit pension transfer advice, a specialist qualification (AF3 or G60) is additionally required — and legally required for DB pension values over £30,000.
Independent pension advisers (IFAs) can consider the full market; restricted advisers are limited to specific products or providers. For pension advice, genuinely independent, whole-of-market access is strongly preferable.
Verify all credentials at register.fca.org.uk before engaging any adviser.
Step 3: Assess their fee structure
Pension advisers typically charge in one of three ways:
Hourly rate: £150–£300/hour, depending on experience and location. Good for a specific, bounded piece of advice.
Fixed fee: A set fee for a defined scope of work — e.g., £1,000–£2,000 for a comprehensive retirement plan. Predictable cost.
Percentage of assets under management: Typically 0.5–1% per year for ongoing advice. The adviser has a financial incentive to grow and protect your pension — but also means costs rise as your pension grows.
All fee structures are legitimate; the right one depends on whether you need one-off advice or ongoing management. Always ask for a clear fee agreement before starting.
Step 4: Questions to ask when comparing advisers
- "Are you independent or restricted?" (IFA vs restricted adviser)
- "What qualifications do you hold, and are you qualified for the specific advice I need?"
- "How do you charge, and how much should I expect to pay?"
- "How much experience do you have with situations like mine?"
- "How often will you review my pension and how will you communicate with me?"
- "Are you authorised by the FCA? Can I verify your registration?"
Step 5: Red flags to avoid
- Advisers who can't confirm FCA authorisation
- Advisers who recommend switching or transferring without fully explaining the implications
- Advisers who charge upfront fees before providing any advice
- Advisers who are vague about their qualifications or independence
- Anyone who guarantees investment returns
- Cold callers offering "free pension reviews" (these are frequently scams)
The shortcut: use a matching service
Rather than researching and comparing advisers from scratch, a matching service does the legwork for you. Nesto matches you with an independent, FCA-regulated pension specialist with experience in your specific situation — for free. You then speak to the adviser before committing to anything.