How to get pension advice and guidance for your retirement

Why should I get advice about my pensions?

If you have a defined contribution pension, you'll need to decide how to turn your savings into an income when you reach retirement. 

You can take up to 25% of your pot tax-free from the age of 55 (rising to 57 in 2028), and then access the rest of the money by using any combination of: buying an annuity, using pension drawdown and taking lump sums. 

If you're unsure about how to maximise your pension savings either pre or post-retirement, a regulated independent financial adviser (IFA) can help. 

Here we look at typical advice costs, plus advice alternatives to consider.

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How much does pension advice cost?

Advisers must agree upfront how much you will pay for their services, but it's not always easy to find this information before making contact with a firm. 

Charging structures vary, but it's common for advisers to charge a percentage fee based on the value of your pot. 

You can expect to be charged an initial fee, usually ranging between 1% and 4%, and an ongoing, annual charge between 0.5% and 1.5%.

Some firms charging a percentage-based fee may be reluctant to take on clients with a smaller pension pot or investment portfolio as they are less profitable.

Alternatively, advisers may charge a flat fee or an hourly rate (the average is £150 an hour). 

VouchedFor, which operates a directory of IFAs, conducts an annual survey of advisers to gather information on average fees and charges. 

Here's how much you could expect to pay based on two different scenarios:

Is financial advice mandatory for pensions?

No, it's up to you whether you seek financial advice to help make decisions about your pension.

However, if you have a defined benefit pension (also known as a final salary pension) and are considering transferring this to a defined contribution scheme, you will need to take financial advice first.  

Unlike defined contribution pensions, defined benefit pensions give you a guaranteed income when you come to retire, which often rises with inflation each year.

For this reason, it's usually best to leave your money where it is.

How do I find a financial adviser?

It's important to shop around when looking for a financial adviser. A comparison site is a good place to start; Unbiased and VouchedFor are the biggest.

You can use their filters to narrow down a shortlist based on areas of expertise and customer reviews. We recommend setting up meetings with at least three financial advisers so you can decide which can provide you the best service for your needs, and the best value for money.

• Find out more: how to find a financial adviser

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What if I can't afford pension advice?

The cost of financial advice about your pension can run into thousands of pounds. 

This is a barrier for many people - but there is a way to use your pension savings to help fund these costs. 

If financial advice isn't affordable for you, make sure you take advantage of free guidance services instead, like Pension Wise.

The pension advice allowance

The pension advice allowance lets you withdraw up to £500 tax-free from your pension savings to put towards the cost of advice.

You can do this up to three times (in different tax years), so you can access retirement advice at different stages. You may, for example want advice when choosing a pension, and again when you're deciding what to do with your savings.

Your pension scheme will transfer money directly to your adviser. 

The pension advice allowance is available at any age, but only if you have a defined contribution pension.

Employer-funded advice

Employers can offer to pay for financial advice for their employees without any income tax being due on this benefit.

This exemption applies to the first £500 of advice in a tax year.

Pension Wise

If you’re 50 or over and have a defined contribution pension you can get free guidance from Pension Wise, the government-backed service run by MoneyHelper. 

Unlike advice, this offers general rather than personalised information or recommendations, and consists of hour-long face-to-face, telephone or online appointments.

Targeted support

Since April 2026, firms have been allowed to provide 'targeted support' to groups of customers to help them make decisions about defined contribution pensions and investments.

Under the new rules - designed to bridge the gap between financial advice and general information - firms can provide bespoke suggestions to specific groups of consumers who share the same characteristics, rather than basing suggestions on an individual's exact circumstances as full financial advice does. 

Targeted support suggestions are usually free, and will be based on information your provider holds about you, such as your age. Your provider might also ask for more information to make sure the suggestion is right for you.

For example, your pension provider might suggest products if you want to start taking income, or highlight the risk of inflation eroding the value of your pension if it's fully invested in cash. These suggestions won't take all of your circumstances into account, so you'll still need to decide if they're right for you. 

Targeted support is regulated by the Financial Conduct Authority (FCA). You can use the FCA's Firm Checker tool to check if your provider is authorised to provide targeted support.

If you're not satisfied with the service you receive you can complain to your provider and escalate your complaint to the Financial Ombudsman Service if necessary.