My parents mentioned to me they were thinking about retirement and pensions, and earlier this week had the first (free) meeting with a independent financial advisor who promised them amazing returns for a £3K one off fee, and 1% ongoing annual charge. I said slowww down..
Facts:
Married
Full new state pension entitlement
Aged 62 and 64
Both working fairly low paid jobs 20-30k each
£210K (transfer out value) pension pot currently with phoenix life in a prosperity plan from the 2000's
Currently contributing £120 a month to this pension
They have around 35K in high interest cash ISAs
Own home with no mortgage
They intend to stop working around state pension age
My recommendation was, to move the £210K phoenix pension pot into Vanguard or H&L SIPP as the fees are lower and you get more control over your money. I think they should move this into a target retirement fund of 2030 which has 70% bonds 30% equities.
I suggested they redirect the £120 a month away from pension into a cash ISA to continue building cash buffer, and to contribute towards some retirement plans (camper van).
Can you sense check this approach for me please, add anything I have missed, or any recommendations. Thank you.