Why people need advice not just price comparisons

Article

09 June, 2010

Characters like the MeerKat Aleksander Orlov and the Opera Singer Gio Compario have helped to convince a generation that Comparison websites are the best place to seek advice.

This is only true if you believe that cheapest is always best.

Comparison websites provide some information but don't communicate everything. More complex products such as Critical Illness Cover cannot be compared on price alone.

The need for Independent Financial Advice has never been greater.The recent recession has meant that people need to be more careful with their money and to fully understand what they are buying or investing in.

An example of how things can be misunderstood is the view that rather than save for Retirement that it is better to invest in the family home and then downsize on retirement to provide an income.

If, however, the average UK house price is £200000 what would that buy in the form on an annuity? Well for a 65 year old, possibly about £9000 for a man and £8000 for a woman.

So think about the average person selling that average house. £9000 a year would provide a gross pension of less than £175 a week .

By all means use comparison websites but always look at what you are buying in full detail and not just by comparing the headlines.

Forbes Financial Services Department will look behind the headlines to give you the right product at the right price at the right time.

For further information please contact the Financial Services Advisers at our Preston office on tel: 01772 220022 or contact Peter Toner by email.

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