Pensions Adviser/Manager

The Job and What's Involved

Pensions advisers and managers work with individuals and businesses on choosing and running pension schemes. They advise individuals on how to make financial plans for their retirement and they advise businesses on pension schemes for their employees.

Personal pensions advisers work mainly with individuals. They find out about the client's current financial situation and future plans, and recommend the most appropriate plan. They may also advise people if their personal circumstances change, for example after divorce, redundancy, bereavement or ill health. Typical tasks include:

• Carrying out financial forecasts and applying personal tax allowances.
• Explaining the merits and risks of individual schemes.
• Explaining legal changes in pension rules.
• Advising on the range of pensions, investment options and transfers.
• Adjusting existing pension schemes if circumstances change.

Pension scheme advisers work mainly with businesses, either as in-house advisers or as consultants for businesses not large enough to make their own provision. They help to create the right package to suit the employer, the workforce and the budgets. Their responsibilities include:

• Liaising with employers and investment managers about the performance of company schemes.
• Negotiating with other professionals, including trade union officials and lawyers.
• Calculating the value of pension funds and making sure regular statements are issued.
• Answering enquiries from pension scheme managers.

Pensions managers oversee and train a team of advisers. They work with business clients and are usually responsible for ensuring that schemes operate effectively and meet the required industry standards. Their duties include:

• Contributing to annual and financial reports.
• Overseeing the development of publicity materials and websites for scheme members.
• Responding to more complex or sensitive enquiries.
• Keeping abreast of changes in financial issues

Pension advisers and managers usually work 40 hours a week, Monday to Friday. Personal pension advisers may work irregular hours to fit around clients who want evening or weekend appointments. There are opportunities for part-time and flexible working.

The work is generally office-based but advisers and managers travel to see clients and businesses, which may involve overnight stays away from home. Personal pension advisers often work from home but keep contact with a central office.

Smart dress is required. A driving licence could be an advantage.

Starting salaries for pensions advisers may be around £15,000 to £19,000 a year.

Getting Started with this Career Choice

There are opportunities throughout the UK. The main opportunities are in the pensions departments of banks, building societies, insurance companies and pension consultancies. There are also opportunities with actuarial firms, accountants and solicitors. Many pensions advisers are self-employed.

Vacancies are advertised in financial publications including Financial Adviser, Money Management, Pensions Management and Pensions World. They are also advertised in the local and national press and on company and specialist recruitment agency websites. Although the demand for pensions advice is increasing, there is keen competition for jobs.

Education and Training

While there are no set requirements for pensions advisers, a degree, HNC/HND or BTEC qualification in finance, accountancy or business management may be helpful, particularly for applicants to graduate training schemes. Students must be 18 years old to register with the Pensions Management Institute (PMI), the professional body for people working with pensions and employee benefits.

Most pension managers are graduates. The minimum qualifications for a degree course are two A levels/three H grades and five GCSE's/S grades (A-C/1-3).

All pensions advisers and managers need to take professional qualifications before they can give advice. The requirements for these qualifications vary - some do not require academic qualifications. Students with an accountancy, actuarial, investment or legal background may be eligible for exemptions from part of Chartered Insurance Institute (CII) and PMI qualifications.

A Few More Exams You Might Need

Training is usually a combination of practical experience and formal qualifications.

Pensions advisers and managers may study for professional qualifications such as:

• The CII Certificate in Financial Planning.
• Institute of Financial Services (IFS) School of Finance Certificate for Financial Advisers (CeFA).
• The Chartered Institute of Bankers in Scotland (CIOBS) Certificate in Investment Planning.
• A range of qualifications from the Pensions Management Institute (PMI).

To advise on pension transfers, advisers must complete an appropriate examination plus the AF3 unit of the CII Advanced Diploma in Financial Planning.

The professional bodies for financial services offer a wide range of qualifications.

The Pensions Management Institute (PMI) offers a wide range of qualifications for staff at all levels. People can become ordinary members of the PMI (MPMI) if they have completed one of:

• Qualification in Public Sector Pensions Administration (QPSPA).
• Diploma in Member Directed Pension Scheme Administration (MDPSA).
• Diploma in Pension Calculations (DPC).
• Qualification in Pensions Administration (QPA).

The Advanced Diploma in Retirement Provision (the new title of the qualification from 2008) leads to Associateship (AMPI). The PMI Fellowship (FPMI) is open to PMI Associates undertaking work involving substantial accountability and responsibility and evidence of Continuing Professional Development (CPD). Relevant work could include specialising in pension transfers or overseeing the administration of stakeholder schemes.

Advisers and managers must be committed to ongoing training and CPD to meet tighter industry regulations and to keep abreast of developments in the financial sector.

The PMI Pension Plan Executive Certificate is a flexible CPD framework for people with relevant professional qualifications from financial bodies, who are working in pensions advice and management.