5 Questions Every Veteran Should Ask Before Taking Financial Advice

If you’ve served in the Armed Forces, you’re used to weighing up decisions under pressure. But when it comes to your pension or savings, rushing into the wrong financial advice can lead to serious, lasting consequences.

At Justice4Heroes, we’ve spoken to many veterans who were given advice that didn’t suit their needs — and ended up losing money, security, or even access to their pension.

Whether you’re speaking to a financial adviser for the first time or being encouraged to transfer your military pension, these five questions can protect you from long-term regret.

1. “Are you regulated by the Financial Conduct Authority (FCA)?”

Before you discuss your pension, investments, or any financial product, confirm the adviser or firm is fully authorised by the Financial Conduct Authority (FCA).

Why it matters: FCA-regulated firms must follow strict rules, including assessing your needs properly, explaining products clearly, and putting your interests first. If something goes wrong and they’re not regulated, you won’t be able to claim compensation through the FSCS or complain to the Financial Ombudsman.

Where to check: Use the official FCA Register — don’t rely on a logo alone. Ask for their reference number and verify it.

Red flag: If they say they’re “covered by someone else’s licence,” or avoid the question — walk away.

2. “What are the risks, and what could I lose?”

Every investment or pension transfer involves risk. A good adviser will explain those risks clearly, in language you understand — not just the benefits.

Ask them directly:

• Could I lose money?

• What happens if the market crashes?

• Are there penalties for leaving the scheme early?

Veterans are often offered high-return products that are unsuitable for their needs — especially if they have a stable pension already in place.

If they downplay the risks or say things like “you can’t lose,” that’s a serious warning sign.

3. “Will I be giving up any guaranteed benefits or protections?”

This is especially important if you’re being advised to transfer your Armed Forces Pension Scheme (AFPS) or another defined benefit pension.

These pensions often provide:

• Guaranteed income for life

• Inflation-linked increases

• Survivor benefits for your family

• No exposure to market losses

Transferring into a personal pension or Self-Invested Personal Pension (SIPP) could mean giving all of that up — permanently.

You need to understand not just what you’re getting, but what you’re losing.

And once transferred, it’s usually irreversible.

4. “How do you get paid — and are there any hidden fees?”

Advisers should be transparent about how they make money. Some are paid directly by you, while others earn commission from the products they recommend.

Why it matters: If they earn a high commission for transferring your pension or recommending a specific investment, they may have a conflict of interest — even if they seem helpful and well-meaning.

Ask:

• Do you charge a flat fee or get paid by a provider?

• Are there any ongoing management charges?

• Will I pay penalties to exit the product?

• Surprise fees and high charges are one of the biggest reasons veterans lose money over time — and most don’t realise until years later.

5. “Can I take time to think — and speak to someone else?”

No reputable adviser will pressure you to make a decision on the spot.

If they tell you it’s a “limited-time offer” or try to rush you into signing forms, it’s a tactic designed to stop you from doing your own research — and that’s never a good sign.

• You should always feel able to:

• Speak to your family

• Get a second opinion

• Ask for more information in writing

• Take time to consider whether the product is right for you

If they push back on any of this, or act annoyed by your questions, they don’t deserve your trust — or your money.

Before You Sign Anything, Speak to Someone Who’s On Your Side

If you’ve already taken advice and something doesn’t feel right — or you’ve been offered a product or pension transfer that you’re unsure about — we’re here to listen.

📞 Call us on: 0800 776 5622 📩 Email: [email protected] 🌍 Visit: justice4heroes.org

Justice4Heroes supports UK veterans in understanding their financial options, identifying mis-selling, and accessing expert legal support when needed