Pension Review: Why it is Important For Your Retirement Plans
A pension is the money you will use to live on when you retire. Most people get a state pension; however, this only provides for your basic needs. To ensure you have the standard of living you want in retirement, it is highly recommended to save into a pension scheme. Many pensioners do not review their pension schemes regularly and this can result in poor returns from the pension.
By having a Financial Conduct Authority (FCA) authorized pension advice company review your pension, you can be assured you will have a better outcome at retirement so that you can achieve your objectives.
Could My Old Pension Be Doing Better?
Like most average UK workers, you may have passed through the books of many different employers in the course of your working life. With the best of intentions, you may have started a new pension with each employer. This means you may have more money in these pension pots than you first imagined. Our job is to conduct a review and show you exactly what is in these pots and how they are performing.
Like most UK workers, when you move on to new pastures, you may have forgotten about your old pension pot, or perhaps you did not know that you can transfer your pension with you. So, your old pension plan may have been left behind, still growing maybe – but not as productive as it could be.
If, for example, you have worked for over 40+ years, you may have accumulated one, two, three or even more neglected pensions that could all be doing better for you. This is why it is recommended to carry out regular reviews on your pensions to ensure you are getting the highest return possible.
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Why Should I Review My Pension?
Your pension can have a huge impact on the kind of lifestyle you will live after you retire. Thus, if your pension is not performing as expected, it is important you review it sooner rather than later and make the necessary changes. Here are just some of the major reasons why you should do a pension review today:
- Avoid Uncompetitive Charges and Fees
Your pension plan could have charges and fees that are uncompetitive by the current standards. By transferring your pension to a modern plan, you can have more of your contributions going towards building your retirement pot. However, before you do a pension transfer, ensure you understand the exit fees involved. Our pension review advisor, we examine your old pensions and give you the most reliable advice.
- Identify Poorly Performing Funds
Your pension could be invested in funds that are not performing well or are no longer appropriate. By having your pension reviewed by an experienced pension advisor, you could have your funds moved to a plan that is: performing better, more suitable for your needs and better suited to your attitude of risk.
- Avoid High Management Charges
Your pension could have high management charges compared to your most recently launched plan. By hiring a pension advisor to review your arrangements, you can determine how competitive your funds are and if necessary, transfer them to a plan with lower management charges. Just like before, lower fees would mean that more of your contributions go towards your retirement.
- Transfer of Multiple Pension Plans
If you have multiple pension plans with different providers, you may have a difficult time managing them properly. Transferring them to a single pension provider can help you keep better track of your money and see if your retirement planning is on target.
However, it is important to note that the decision to do a pension transfer is a complex one and can have a negative impact on your retirement benefits. Thus, it is highly advisable you consult a qualified financial adviser before making the move.
- Get the Annuity Income You Expect
If your plan is to buy an annuity at retirement, the amount of income you will get will depend on the size of your pension pot and the annuity rates at that time. More importantly, an incorrect retirement date could have serious implications on the type of lifestyle you can enjoy in retirement. By reviewing your pension regularly as you get older, you can know whether you are on the right track and if you need to make any changes or improvements.
- Build Up a Large Enough Pot
The size of the pension pot you can build up will largely depend on the date you plan to retire. If you get that wrong, your pot may not have enough time to accumulate as much as you need and thus you may not achieve the lifestyle you want in retirement.
- Get the Right Support at the Right Time
If you are an employee, you have more choices than ever when it comes to your pensions. You can access money from defined contribution plans if you are above 55 years. You can take an income from your pensions as you continue to work and pay into them. However, you may need support to understand the implications of each so you can make the right choice.
Pension Review Advice
We offer pension advice to UK residents who are thinking of retirement planning, we firstly assist you by finding out more about your current situation before recommending to you the most appropriate solution for your circumstances by our team of trained advisors who have up to date in depth market knowledge.
Benefits Of Pension Review Advice
What Should I Save into a Pension?
No matter what age you are, it is important to think about your pension arrangements, the kind of lifestyle you would like after you retire and what you can do to get there. Whether you or a family member is just getting started, or you are getting closer to retirement, reviewing your pension could make a big difference for your retirement plans.
You can save for retirement in many different ways, – through ISAs, bank or building society savings accounts, or purchasing properties to rent out. The most common and appropriate way for most people is through a pension. Pensions have numerous benefits over other ways of saving for retirement:
- Pensions are a very tax efficient way to save, especially with the current tax relief on contributions. Basic rate taxpayers under the age of 75 get 20% tax relief on contributions subject to the higher of your earned income or up to the annual allowance. For every £80 you contribute into a pension, you will automatically see £100 go into your pension pot.
- When you pay into a workplace pension, your employer often will make a contribution. You should consider what added benefits you derive from your employer as the more you contribute the higher the benefit you will receive from them. This is, however, usually capped at a certain level.
Why Should You Use Our Pension Review Services?
When you hire our pension review services, you should expect:
- A detailed analysis of your current circumstances, including what you expect to achieve now and after your retirement.
- A detailed report on the performance of your current pension and the options available to you.
- A professional review of your pensions, including what can be done to meet your desired outcome.
- An explanation of the Pension Transfer process, and all the charges involved.
- A clear quote of how much it will cost you to follow the recommendation and how your pension would be managed in the future.
If you think you require a pension review, do not hesitate to contact us today.