Financial guidance v financial advice – what’s the difference?

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Taking money from a pension pot or starting to think about it? It’s a big step, and you might want to talk through your options before making decisions. ‘Guidance’ and ‘advice’ are two of the main ways you can get help. Here, we explore some important differences between the two.

Guidance is…

1. Not personal to you

Guidance gives you information to help you see what your options are and what choices you could make. For example, some people get guidance to learn more about the different ways they can take money from their pension pot. 

But it isn’t tailored to your own circumstances – it’s more general. It’s an impartial service, so the person or company giving you the guidance won’t recommend products to you or tell you what to do.

Once you’ve got guidance, it’s up to you to decide what your next steps are and take any action yourself.

2. Usually free

Guidance is normally free, unless whoever’s providing that guidance states otherwise.

3. Provided by a wide range of individuals and organisations

Guidance can be given by lots of organisations and individuals, who’ll typically have financial services knowledge. 

They may be regulated, but not always. You’re responsible for any decisions you make based on the guidance you’ve been given. 

If you’d like help with retirement planning, you can usually get guidance from your pension provider.

And you can get guidance on a wide range of financial topics from MoneyHelper, which is a government-backed service.

If you’re over 50, there’s also Pension Wise (a service from MoneyHelper), which can give you guidance around different ways to take your pension savings. You can visit Pension Wise online or call 0800 138 3944.

These are some examples of where you can get guidance.

Advice is…

1. Personal

Advice is personal to you. A financial adviser will get to know your financial situation and your retirement goals, then they’ll recommend actions based on your own circumstances. For example, an adviser could tell you what they think is the best way for you to take your pension savings.

Your adviser can even take action for you. For instance, they can set up a flexible income for you (‘drawdown’), which lets you take a regular income from your pension pot or take money when you want. They can help you manage this, which could make things easier for you.

Or you might give them permission to buy a particular financial product – for example, an annuity, which can give you a guaranteed income for life.

2. Usually paid for by you

You usually pay to get financial advice. The person or organisation offering the advice should tell you what the charges are before you go ahead with it. 

Charges can vary depending on what you’re getting advice for and who you’re getting the advice from.

3. Offered by qualified financial advisers 

Advice is given by organisations or qualified individuals that are regulated by the Financial Conduct Authority (FCA). When you get advice, you’re getting an expert opinion.

Your adviser is responsible for the advice they give you. You’re protected by law, so you may be able to get compensation if something goes wrong.

Did you know you can get expert advice from Standard Life Financial Advice to help you make the most of your retirement savings? If you’re considering taking your pension savings – or you’ve already started but you’re wondering about different ways you could take your money – you can get started with a 10 minute introductory call with one of our advisers. There’s no commitment to continue, and we’ll help you decide if advice is right for you.

Find out more

What’s right for you?

The right support depends on how confident you feel about making decisions about your pension savings.

Guidance may be right for you if you want to understand your retirement options but you’re not looking for a personal recommendation and you feel confident making your own plans.

Advice may be right for you if you do want recommendations based on your individual circumstances and expert support in building your retirement plan.

So it’s important to think about what kind of help would benefit you most.

 

The information here is based on our understanding in January 2026 and should not be taken as financial advice.

A pension is a long-term investment that you cannot normally access until age 55 (rising to 57 from 6 April 2028). Its value can go down as well as up and could be worth less than was paid in.