The idea is to help consumers understand the pros and cons of each option and make a rational decision when it comes to planning their retirement.

This is part of an initiative launched by the IFP and Defaqto earlier this year to provide Financial Planners with a greater range of practical resources to support their advice process and, ultimately, the service they deliver to clients.

{desktop}{/desktop}{mobile}{/mobile}

Steve Gazzard, chief executive of the IFP, said: "The truth is that advice and guidance mean the same thing to consumers.

"By working with Defaqto to produce this factsheet, we hope we can help consumers gain more information about what they can expect from the advice process, thereby giving them greater confidence to seek appropriate professional Financial Planning advice.

"The concern has to be that the increased choice open to consumers, at a time when help has never been so needed, will lead to paralysis, or poor outcomes.

"But I remain hopeful that the value of advisers who focus on goal-based planning, where the outcome is a plan and not just a product recommendation, will be recognised."

Gill Cardy, insight consultant (wealth) at Defaqto, said: "Now more than ever Financial Planners can help clients tailor appropriate retirement and investment solutions which can deliver the income and capital those clients need throughout an increasingly flexible retirement.

"But in order to do this effectively, clients need to understand why their Financial Planner is asking these questions and really engage with that discovery process."

To encourage more dialogue with and between advisers the initiative is being promoted via Twitter – through the hashtag #DefaqtoIFP.