financial-preservation-2Ever bought something new to wear, given it pride of place in your wardrobe then promptly forgotten about it? Hidden from view, rarely seen? 

The same could be said for your pension.

You may be the sort of person who took out a pension a few years ago and hasn’t checked up on it since. Don’t worry, you are not alone.

But how do you know if it’s still suitable for you? Is it invested in the most appropriate way to suit your circumstances? Are you paying the right amount? And will it do what you want when you retire?

So many questions to consider, but luckily they can all be answered by taking one simple step – get a pension review today. Here’s what this could cover:

Firstly, it will make sure you are putting away the right amount. It is very easy to set up a plan, make your payments and think it’s a case of “job done”. But what if you get a salary increase but don’t also increase your pension payments? A payment of 10% of your salary made 10 years ago is probably only equivalent to about 5% of what you are now earning!

Secondly, it will check that you are in the right funds. You may well have chosen to invest in the best available fund when your plan was originally set up. But how is that performing now? Are you sure it’s not languishing at the bottom of the performance tables? The funds that were right when you were just starting out are not necessarily going to be right for you today.

Thirdly, it will assess whether you are paying the right charges. Some older plans have high charges which may include commission payments to an adviser you no longer use.  It’s often possible to reduce the cost and build in paying for regular reviews.

Fourthly, it will help work out how much your pension will be worth when you retire. Have you thought about how much you will need to live on and have a plan to be able to meet your goal?

And finally – and most importantly – if you want to take advantage of the new so-called’ pension freedoms’ you will need to make sure you are in a plan that will allow this. Some do, some don’t.

So if you think a pension review would help provide piece of mind, or if you simply just want a fresh opinion on your current plans, get in touch with us. We’d love to talk to you. 

We promise that the advice we give will be logical, clear and straightforward. And you’ll never lock your pension away out of sight again!