Independent Financial Advisers

So here I sit in the dark, trying not to awaken my baby with my clicking and tapping. I have been browsing the web as I do, sifting through the news. What is happening in the world today? I came across this article which got me thinking a little. Dangerous, no doubt about it!

http://www.telegraph.co.uk/finance/personalfinance/investing/8649103/Financial-advisers-accused-of-ripping-off-pension-savers.html#dsq-content

It would seem that some “Independent” Financial Advisers are taking advantage of people’s trusting nature and naivete. As a normal, regular everyday person, you assume that by speaking to one of these IFAs you are getting unbiased and accurate information and advice. I am sure in most cases this is true. However, if you get one of the “bad eggs” then you are unfortunately losing money and probably not even aware that this is happening. In this economy, who can afford to lose money on anything, even more so their pensions?! The teachers and public servants are up in arms about their pensions and here we are in private sector, struggling as well to hold on to ours. These ‘Independent’ Financial advisers may be independent of a bank but definitely not of their own self interest. Some of these IFAs have probably lost their income as mortgages are being rejected left, right and centre so in order to enhance their wage, they start to ask people to move their pension plans. This of course leads to a commission that lines their pockets leaving us, the regular Joe, without a suitable pension for our needs.

So is there a way to protect ourselves? – We should probably take the time to really talk (and listen) through all the options presented by the adviser, ask for a bottom line breakdown of the change to your pension plan. Clarify any of the details with him/her and then think through it before agreeing any changes. This is your future! Do not let anyone else mess it up for you.