Financial advice

Even those who know a lot about money and finances still speak to an adviser to make sure they make the right choice.

Some financial options can be straightforward, but with others, once you have made your mind up, you cannot go back and they can come with risks. A financial adviser will find a solution that is right for you, rather than just hand you an off-the-shelf, ‘one-size-fits-all’ solution. They will ask you questions about you, your job, family, and lifestyle, to get a full picture of who you are and what you really need – whether you are a first-time buyer, starting a family, or preparing for retirement.

Getting advice could actually see you significantly better off.

The sort of advice you might need will depend on the type of pension you have.

When you come to take a pension, your pension scheme will send you lots of forms and tell you all about "flexible" options, often with some complex words thrown in. Your choices may feel overwhelming, and it can be hard to know which option is best for you.

An adviser can give you advice on your pension options and products so you can pick the best options for you, your family, and your circumstances. They will also look at the most tax-efficient ways you can take money from your pensions, so you are getting the most out of your pension savings.

This type of pension pays you an income for life and sometimes a tax-free lump sum. While taking your pension in this way can often be the best choice, you can still access it in a range of flexible ways. You might choose to:

• receive a flexible income, that goes up and down when you need it to
• receive an income for a set period of time
• take a number of cash lump sums over a few years
• take your whole pension in one go, as one lump sum

If you want to take advantage of one of these options, and the value of your pension is £30,000 or more, you need to take professional and regulated financial advice first. This is the law, and it is to make sure you understand any guarantees you might give up.

This type of pension gives you a pot of money which you decide how to use. You have lots of ways you can take your pot. Each one has different tax rules and investment risks. You should also check what gets left to your loved ones when you die.

You use your pension pot to:

• receive a flexible income, that goes up and down when you need it to
• buy a guaranteed income for life
• receive an income for a set period of time
• take a number of cash lump sums over a few years
• take your whole pension in one go, as one lump sum
• leave your pot invested and take it later

Sometimes you can set this up yourself, but you might want advice deciding which option is best for you, or how to go about setting this up. If you are not sure how the tax works for each option, or want to make sure your loved ones are covered when you die, we recommend you get an adviser to help you.

• This pension will be my sole or primary source of income in retirement, and the fact that it is guaranteed is reassuring to me
• I believe that I have a normal life expectancy, so the fact that the pension will pay out until I die, whenever that might be, is important to me
• As this is my sole or primary source of income in retirement, I am reassured that it will not be reduced if stock markets fall
• I have a partner who will also be dependent on this pension income, and I am pleased that it will continue to support them if I die before they do
• I am happy that, although this pension is a reduction in income from the level I earn in employment, it is enough to meet my financial needs in retirement

1. My retirement is likely to be a gradual affair, and I expect to have varying income needs from year to year, so it is important for me to be able to vary the income I receive from my pension accordingly
2. Unfortunately, I am not in good health and as a result, my life expectancy is likely to be below average; I understand that a flexible pension gives greater options for my loved ones and dependents
3. I am planning to take early retirement – at least partially – and I value a flexible pension
4. I have a range of financial assets at my disposal to support my retirement, so this particular pension will not be my sole source of income. The guarantees within this particular pension are not as important to me, and flexible pensions give me more options

This type of pension pays you an income for life and sometimes a tax-free lump sum. While taking your pension in this way can often be the best choice, you can still access it in a range of flexible ways. You might choose to:

• receive a flexible income, that goes up and down when you need it to
• receive an income for a set period of time
• take a number of cash lump sums over a few years
• take your whole pension in one go, as one lump sum

If you want to take advantage of one of these options, and the value of your pension is £30,000 or more, you need to take professional and regulated financial advice first. This is the law, and it is to make sure you understand any guarantees you might give up.

This type of pension gives you a pot of money, which you decide how to use. You have lots of ways you can take your pot. Each one has different tax rules and investment risks. You should also check what gets left to your loved ones when you die.

• receive a flexible income, that goes up and down when you need it to
• buy a guaranteed income for life
• receive an income for a set period of time
• take a number of cash lump sums over a few years
• take your whole pension in one go, as one lump sum
• leave your pot invested and take it later

Sometimes you can set this up yourself, but you might want advice on deciding which option is best for you, or how to go about setting this up. If you are not sure how the tax works for each option, or want to make sure your loved ones are covered when you die, we recommend you get an adviser to help you.

With over 100 years’ experience in advising the Church, their advisers have specialist knowledge of the Church of England as well as a full and thorough understanding of how your pension works.

EFAS will offer you clear guidance and advice on all aspects of financial planning. This includes:

• Your options to consider accessing your pension in the most suitable way, in line with your circumstances (including flexible access and annuity advice)
• How to invest pension lump sums, diversely and tax efficiently, reflecting your attitude to risk
• Key options to consider with other pension plans belonging to you and your partner.
• Mortgage advice when seeking to buy a new home or remortgaging an existing property. Also specialising in mortgage advice for those living in job-related accommodation
• How to save for your future retirement, if it is some way off
• Saving & investing in accordance with your environmental, social & corporate governance principles
• Key steps to protect you and your family through life and to protect your income
• Inheritance tax planning to help preserve your estate for your loved ones

Call or email EFAS to arrange a free initial meeting with one of their financial advisers:

• Phone: 0800 107 0190 (Monday to Friday 9.00am to 5.00pm)
• Email: getadvice@ecclesiastical.com
• Visit: ecclesiastical.com/financial-advice/coe-pensions-board

You can meet with an EFAS adviser in a variety of ways, over the phone or face-to-face (in person or virtually).

The first meeting is free and without obligation. If you feel you would like advice, once EFAS know more about your situation and financial objectives, they will then calculate their fee and clearly explain what this covers.

You can then decide whether you would like to proceed further.

We have agreed competitive fees with EFAS. When contacting EFAS quote ‘CEPB25’ to obtain discounted rates.

First things first, speak to family and friends and find out if they have used an adviser in your local area. Of course, just because they may have had a good (or bad) experience with them, it does not mean that you will have the same experience, but it is certainly a good starting point.

After that, you can find an adviser at Retirement Adviser Directory | Find a regulated financial adviser (moneyhelper.org.uk).

The cost of advice will always be agreed with you first. The cost and how you pay will vary depending on which adviser you pick.

There are three ways to pay:

Fixed fee

These fees are for a specific service, such as advice about your retirement options.

This is the most transparent way you pay fees. You know what the fee is upfront and pay this before you receive your advice, so there are no hidden or extra costs. It also means your adviser is not incentivised to offer you options where they receive more fees.

Percentage fee

This is based on a percentage of the money you want advice on or managed.

You will usually pay an initial percentage charge for becoming a client and investing your money, then an ongoing percentage charge for each year that they continue to manage your money. This percentage can range anywhere from 0.5% to 5%, so make sure you ask

Hourly charge

Some advisers are moving more to a model which resembles solicitors or accountants and charging on an hourly basis.

If you choose to go down this route, make sure you are given a full breakdown of the work they have done, and how long it took. Hourly rates can be anything from £50 to £250, so make sure you ask this before you go ahead.

We can still help you with your pension, but we cannot give you advice. 

You can talk to us if you need help with:

• how to boost your pension by paying AVCs - come to us to set this up or change what you pay
• finding out what your pension might be if you retire on a particular date
• taking your pension – ask us for retirement application forms
• ill-health retirement figures
• general questions about your pension with us
• projections of what your pension might be when you retire
• queries about what will happen to your pension if you die
• updating your personal details