As a first step in your retirement planning, it’s simple to check how much state pension you are entitled to. You can do this easily on Gov.uk here. The amount you receive depends on how many ‘qualifying years’ you have earned – how long you have been paying National Insurance contributions. If you have 35 full years, then this will qualify you for the maximum amount of guaranteed income. If you have gaps, you may be able to pay to fill in these missing years.
Like with any financial product, people have become used to shopping around to get the best deal on their personal pension. The option to transfer your pension has become increasingly popular, to guarantee the best possible rate of return. However, there is so much choice available that it can be tricky to decide on the final defined contribution pension without expert financial advice from an Independent Financial Adviser.
Pension freedoms mean that, yes, you can move your pension at any time to a different provider. There is a lot of pension transfer advice available, and with many providers offering a vast array of products, it can be difficult to pick out which one is really for you.
The workplace pension is something that many people take for granted. You contribute towards it whenever you are paid, your employer might add their own contributions, and you will also be paying into your state pension. You might even have an additional private pension fund you are paying into. However, this is no guarantee that your pension is growing as you expected it to, especially if you have lost track.
Many people choose to transfer their pensions to a new provider if they are looking for pension consolidation, want more investment choice, or if their current pension fund is not offering the best value for money. Combining all your private pensions into a single pension fund could have several advantages, including being easier to manage and keep track. Modern pensions may also give you more choice of investments, which is potentially useful if you want more control (although remember that investment value can go down as well as up).
Auto-enrolment – when a workplace automatically enrols you in a private pension and it is up to you to opt out if desired – is useful in many ways. For younger workers or those who might have put off setting up a pension fund, it gets people off to a good start when saving for their retirement. However, if you are already paying into a personal pension, this can make retirement planning more complicated.
A pension assessment may not be something you have considered. Perhaps it sounds like it’s only for people who have large personal pension pots, or even those who are having problems with their private pension. However, a pension review is suitable for everyone, no matter how close you are to retirement. It is designed to benefit you, and the financial advice you are given will not only make sure you are getting the right deal but could save you money.
Many people have a few different pension pots from previous employers, and you may have heard of pension consolidation: putting all your pension plans together in one, single pension fund. For your retirement planning, it’s essential to have an idea of how much income you could expect to receive from your final pension.
Pension consolidation could make this much easier: no-one wants to spend hours trawling through filing cabinets or peering at different websites trying to work out what all your pension funds add up to. It can also reduce the chances of losing track of any old workplace pension pots you may forget about as they are lower in value. When it comes to your retirement fund, every penny counts.
Many people consider transferring their pension funds, from consolidating their old workplace pensions to moving out of a final salary scheme into a personal pension. If you have considered transferring your pension pot to another scheme or provider, here are six reasons why it could be beneficial.
Some people opt to move their pension because they are in an under performing scheme delivering poor – or non-existent – growth. If your private pension is performing poorly, you may well want to move your pension funds elsewhere.
Living through decades of increasing prosperity has undoubtedly given baby boomers a lot of advantages, but they can also face several challenges. Today, many feel pressured into working past their normal retirement date, often because of the number of demands being made on their finances by their families. If they are unable to work, they can have concerns about outliving their retirement savings.
Retirement planning is a complex process. As your retirement date draws nearer, it’s sensible to think about some key issues that will help get you off to the best possible start for the next stage in your life. Follow our simple tips below to give yourself peace of mind and, the best possible opportunity to make your pension plan work for you.
