# Do You Need Financial Guidance Or Financial Advice – Or Possibly Both? Find Out Here Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-05-21 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Maximise Your Retirement Fund: Financial Guidance vs Meta Description: Understand the difference between financial advice and financial guidance to make informed decisions. Get free, impartial guidance under the Guidance Guarantee. URL: https://financedigest.com/do-you-need-financial-guidance-or-financial-advice-or-possibly-both-find-out-herehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/financial-guidance-1736838316672-compressed.jpg) If the answer to this question isn’t immediately apparent, you should read on to find out. That’s because understanding the difference between financial advice and financial guidance could help you maximise your retirement fund. As you approach your retirement, you can get free and impartial financial guidance. This facility is available thanks to the government’s introduction of the Guidance Guarantee in 2015. You can receive this guidance through the [Citizens Advice Bureau](https://www.citizensadvice.org.uk/) or The Pensions Advisory Service. The main thing you must know from the outset is that free [financial guidance is not the same as professional financial advice](https://www.financedigest.com/financial-advice-for-starting-your-own-business.html "Financial advice for starting your own business"). So, what’s the difference? **Financial Guidance** - [Financial guidance provides](https://www.financedigest.com/mazars-to-acquire-financial-modelling-consultancy-and-training-provider-corality-financial-group.html "Mazars to acquire financial modelling consultancy and training provider, Corality Financial Group") you with a general overview of the market. It is not necessarily applicable to your situation. - Guidance provides you with the initial information you’ll [need to base specific questions for a financial](https://www.financedigest.com/cfos-need-a-focus-on-forex-in-financial-planning-tools-accountagility-reveals.html "CFOs need a focus on forex in financial planning tools, Accountagility reveals") advisor. - Having received financial guidance, you have no guarantee on the decisions you subsequently make. - Financial guidance is free under the Guidance Guarantee. **Professional** [Financial Advice](https://www.financedigest.com/the-changing-face-of-financial-advice.html "The changing face of financial advice ") - [Financial advice](https://www.financedigest.com/award-advice-financial-services-can-qualify-for-tax-shelters.html "Award Advice – Financial Services Can Qualify For Tax Shelters") gives you information about options specific to your situation. - Advice is not generic but tailored to individual clients. - Financial [advice](https://www.financedigest.com/using-technology-to-help-bridge-the-widening-financial-advice-gap.html "Using technology to help bridge the widening financial advice gap") considers your whole financial situation – income, goals, investments, etc. - Advice explains the [risks and benefits of the various options presented](https://www.financedigest.com/why-insider-threat-presents-a-big-risk-to-financial-services-organisations.html "Why insider threat presents a big risk to financial services organisations"). - Some professional [financial](https://www.financedigest.com/using-technology-to-help-bridge-the-widening-financial-advice-gap-2.html "Using technology to help bridge the widening financial advice gap") advice involves paying a fee before advice is provided, while some advice is non-obligatory where a fee is only payable if you decide to act on the advice. - If your advisor is regulated by the FCA (Financial Conduct Authority), you can receive compensation from the Financial Services Compensation Scheme or [Financial Ombudsman](https://www.financial-ombudsman.org.uk/) in the event of suffering a loss due to wrong advice. - You can find a regulated [financial advisor](https://www.financedigest.com/how-mifid-ii-will-impact-financial-advisor-communications.html "HOW MIFID II WILL IMPACT FINANCIAL ADVISOR COMMUNICATIONS") on the FCA website. - ILC UK research data from 2019 shows that receiving advice from a regulated financial advisor can result, on average, in an additional £30,991 in your [pension pot by the time](https://www.financedigest.com/the-pensions-deficit-abyss-the-time-to-review-your-situation-is-now.html "The pensions deficit abyss – the time to review your situation is now") you retire. **Financial Guidance or Financial Advice** Financial guidance could prove particularly useful if you [need an introduction to pensions and the various options](https://www.financedigest.com/7-finance-career-options-to-consider-and-what-you-need-to-know-about-each.html "7 Finance Career Options to Consider and What You Need to Know About Each") available. If you already [know the various options available and need](https://www.financedigest.com/4-things-you-need-to-know-about-mortgages.html "4 Things you Need to Know About Mortgages") some help in deciding on the best option to go for, you’ll benefit from financial advice. **When You Must** [Seek Financial Advice](https://www.financedigest.com/seven-out-of-ten-uk-adults-aged-25-44-never-seek-advice-on-dealing-with-debts-despite-depending-on-the-bank-of-mum-and-dad.html "Seven out of ten UK adults aged 25-44 never seek advice on dealing with debts despite depending on the bank of mum and dad") There are certain situations when you are [legally required to obtain regulated financial advice](https://www.financedigest.com/some-credit-suisse-at1-bondholders-seek-legal-advice-law-firms.html "Some Credit Suisse AT1 bondholders seek legal advice -law firms"). These occasions are as follows: - If you have a career average (defined benefit) pension or final salary pension valued over £30,000, and you intend to transfer to a defined contribution scheme. - If you have a defined contribution pension [valued above £30,000 with a guaranteed payment](https://www.financedigest.com/2021-predictions-realising-the-value-of-payments-transformation.html "2021 Predictions: Realising the Value of Payments Transformation") rate on retirement, and you want to change it to another type of investment. In either of the above cases, if your pension is worth less than £30,000, you should still consider [speaking with a regulated financial](https://www.financedigest.com/how-can-fintechs-better-engage-zillennials-with-their-financial-health-the-answer-lies-in-speaking-to-them-in-their-own-language.html "How can fintechs better engage Zillennials with their financial health? The answer lies in speaking to them in their own language") advisor before making a change to your pensions. **Use an [Independent or Restricted](https://www.financedigest.com/advice-for-retailers-as-covid-restrictions-ease-this-independent-retailer-month.html "Advice for retailers as COVID restrictions ease this Independent Retailer Month") Financial Advisor?** One question you should always ask a [financial advisor before engaging their services](https://www.financedigest.com/the-future-of-financial-services-tech-evolution-not-revolution.html "The future of financial services: Tech evolution not revolution ") is whether they are independent or restricted. Independent [financial advisors can provide advice on the whole market](https://www.financedigest.com/the-political-wildcard-what-is-trumps-us-presidential-nomination-doing-to-financial-markets.html "The political wildcard: What is Trump’s US presidential nomination doing to financial markets?"). Restricted advisors are limited to specific products. **Conclusion** Hopefully, you now understand the difference between [financial guidance and financial advice and which one you need](https://www.financedigest.com/the-financial-services-industry-needs-to-get-serious-about-cyber-security-in-the-covid-19-era.html "The financial services industry needs to get serious about cyber security in the Covid-19 era"). If you’re thinking about your pension, speak to a regulated adviser like [Portafina](https://uk.indeed.com/cmp/Portafina/reviews) or, view the guides at [The Pension Advisory Service](https://www.pensionsadvisoryservice.org.uk/). **Brought to you by Jennifer** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---