The value of pensions and your investments and the income they produce can fall as well as rise. You may get back less than you invested.
Planning for your retirement is an important decision and one the many people have taken steps to put in place. For most people paying into a pension, they won’t give their contributions a second thought until the time comes to retire. Whereas others will take a keen interest in how their investments are performing.
There are many benefits in reviewing your pensions – our professional advisers can offer a no-obligation report about your current plans and measure them against recommended providers. This pension advice is highly beneficial and could mean that in the long term more money is yours and with it your pension benefits increase. Below are three reasons to review your pensions.
Reduce the fees and maximise your pot
Pensions can incur a number of fees, from set up costs to annual management charges. It’s these fees, together with investment performance, which can determine the returns and final benefits you will receive from your pension fund.
By reviewing your pensions you will be able to see what fees you’re paying, you might even be able to transfer your pension to another provider which will help you reduce costs.
Monitor the performance
When you first started paying into your pensions all those years ago the funds you were recommended might have been predicated to perform well. However, over time they may have become stagnant due to changes in the marketplace.
This is why reviewing your pensions will mean that you can monitor their performance. If they are not doing as well as expected you might think about a pension transfer or even consolidating all your pensions into one.
Adjust your risk profile
Everyone has a different attitude to risk. Factors such as health and well-being, how long you have until retirement or how financially secure you are all play a part in reaching your post retirement goal. It’s always a good idea to reassess this risk on a regular basis, particularly as you get closer to retirement, and as such your financial goals should complement this risk.
By not reviewing your pensions it is unlikely that you are going to know what the expected amount you will receive is going to be when you retire. Your state pension may not be sufficient enough to live a stress free retirement.
Regular reviews will help you to prepare for the long term and our experienced advisers will be able to highlight those funds which are not performing well. If your current fund is performing well then our advisers will tell you, giving you piece of mind that your savings are in the right place.
Getting the right pensions advice
It is surprising how many people do not review their pensions more regularly. According to the FCA’s 2017 Financial Lives Survey – 53% of people have not reviewed how much their pension pot is worth in the last 12 months.
Some people might have a number of different pensions with a variety of providers and it can be hard to understand which ones are giving the greatest return – getting advice is crucial to delivering the best outcomes at retirement.
If you have a question about your current pension plan or would like to speak to one of our experienced pension advisers, get in touch with the team today.