Helping Hands: Financial advice vs guidance

Do you ever find yourself confused over financial advice and guidance? Are you unsure which one you might need when thinking about accessing your pension? Don’t worry, you’re not alone.

We understand that navigating the world of personal finance can be challenging. Which is why over the next few days we’ll help you understand the ins and outs of financial advice and guidance, and where you can access both.

Financial advice and guidance: a definition

Financial advice and guidance are two different things. Advice refers to personalised recommendations based on your specific situation, whereas guidance is general information to help you make informed decisions.

Watch our short video for an overview

For example, financial advice is like a mechanic who can inspect your car and give personalised recommendations based on the specific condition of your car. On the other hand, financial guidance is like a car manufacturer’s manual, offering general information about maintaining and servicing your car.

Financial advice vs financial guidance 

The main differences between the two at a glance.

Guidance

• general information and not tailored to your circumstances
  
• is available from a range of sources (including Pension Potential)
  
• explains the options available to you to help you understand them
  
• won’t recommend which options you should choose, but can point you in the direction of more help
  
• is usually free of charge

Financial advice

• is specifically tailored to you and your circumstances
  
• only available from financial advisers
  
• regulated by the Financial Conduct Authority
  
• explains the options available and recommends which ones would be good for you
  
• might suggest other actions as part of the advice
  
• will need to be paid for

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