If you are about to retire and the closest you have come to financial planning is making a regular contribution to your company super scheme, deciding what to do with your payout can be an ordeal. Getting reliable financial advice is the first step, but as you get older, you are increasingly conscious of the dire consequences of losing your hard-earned savings.

The Council on the Ageing says about 20 per cent of calls to its seniors' information service are from people worried about their finances. The council's Beth Stevenson says they fall roughly into two groups: those who have never invested money or who are anxious about finding the right person to trust with their savings.

Of those who have never invested, many have been "wage earners all their lives who don't know how to invest", Ms Stevenson says.

"The second group have money and are used to using it, but they are anxious about putting their trust in someone, knowing if they lose their money they don't have any way of replacing it," she says.

Many people approaching retirement feel vulnerable when it comes to their finances and are afraid of looking stupid in front of a financial planner. Some are reluctant to spend their cash on a financial plan, and others are uncomfortable shopping around for a planner. Ms Stevenson advises that before looking for a financial planner, you can find out more from:

• The Financial Information Service at Centrelink for pensioners.
• The National Information Centre on Retirement Investments (NICRI), which produces a large range of brochures explaining investment options.
• Money sections in the daily newspapers.
• Seminars, including Australian Stock Exchange lectures.
• Investment books and magazines.

RetireInvest financial planner Raylene Benson recommends considering retirement needs and gathering information at least five years before stopping work. She reassures her clients that they don't need to become experts.

A good financial planner helps clients understand the terms and the process.

The National Information Centre on Retirement Investments and the Financial Planning Association have brochures designed to help you choose a financial planner. Both groups suggest you know your needs and aims before arranging interviews with financial planners.

"People need to visualise their future and what their future needs will be," Mrs Benson says. This means considering future income needs, planned expenditure such as cars, home renovations and trips, and having a reserve account for unforseen expenses.

Once you've thought about these things, you can start looking for a financial planner. Ask your friends, colleagues or accountant if they can recommend an adviser, call the FPA or check the Yellow Pages.

Contact the company by phone or in writing. Ask for a copy of their advisory services guide, which details the company, its licence dealer status, complaints procedures, services, fees, commissions the advisers receive, and a list of other companies or banks the advisers are associated with.

In A Guide to the Financial Planning Process, The National Information Centre on Retirement Investments recommends asking the company about their experience, licence terms, insurance and fees. Does it provide a written plan showing investment fees, commissions, social security and tax implications, and the risk potential?

Mrs Benson suggests using larger companies for continuity of service. She suggests asking how many certified financial planners are on staff and how many people are employed in the firm's research and compliance departments. Does the company provide an ongoing service and what does it cost? Is there a free, no-obligation meeting?

This initial research is crucial to establishing whether the financial planning firm is reputable, experienced and has procedures in place should things go wrong.

The Financial Planning Association advises against getting drawn into detailed planning at the first interview. But Mrs Benson says it is sensible to expect you'll be discussing a lot of personal financial information.

Answering these sorts of questions does not place you under any obligation to agree to a written plan. Any pressure to sign up at this point should prompt you to defer that decision.

If you arrange interviews with more than one adviser, make this clear at the interview. It is OK to shop around.

The National Information Centre on Retirement Investments director Wendy Schilg recommends getting three financial plans.

"By going to three financial planners, you will get a gut feeling about one or two and will like what they suggest and feel comfortable with it," Ms Schilg says.

Check that the proposed investments match the risks that you are prepared to take, and ask what fees and charges apply to each investment. Get the answer in writing. This gives you a clear picture and ensures you have evidence if you later find you have been misled.

Do your homework and ensure you have the answers, but your choice of adviser may depend partly on instinct.

National Information Centre on Retirement Investments (NICRI), 1800 020 110 or NICRI's website or the Financial Planning Association, 9614 2289 or The Financial Planning Association's website.