An annual review of your pensions is a vital part your retirement planning. With the state pension unlikely to provide enough for the quality of life you'd like, it is vital to ensure that you have sufficient funds in your pension pot to fund an enjoyable retirement.
The first thing a pension review from an adviser will do is help
identify all the pensions you have paid into during your working life. With
most of us having multiple employers during our careers, it is perhaps
unsurprising that there is some £400 million in pension pots currently
unclaimed.
Old pensions which are no longer being paid into are referred to as ‘preserved’ pensions. The pension pot should still
be growing but its performance may well be less than other schemes. If you have several of these ‘preserved’ pensions it can have a big impact on your
final pension pot.
With all of your pensions identified a pension
review will examine key elements of the scheme:
1) What charges and
fees you are paying
2) Recent performance of your pension scheme
3) Long term projectory of your savings
3) Check how appropriate the pension is for your needs
Pension review complete your adviser will be able
to give you an accurate picture of what you can expect in retirement and
compare that with what you could achieve by moving some or all of your savings. Moving funds could also benefit from
lower fees and charges and potentially be easier to keep track of.
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