A pension is money you'll use to live on when you retire. Most people get a state pension but this only provides for your basic needs. To make sure you have the standard of living you want in retirement it's best to save into a pension scheme.
Many people do not review the pension schemes regularly and this can lead to poor returns from the pension. It's your money and naturally, you would like the best return at retirement.
Regularly reviewing your pension with a Financial Conduct Authority (FCA) authorised pension advisor could give you a better outcome at retirement and help you achieve your objectives.
6 Areas Pension Advisors Can Help With Your Pension
Are you getting ongoing advice?
Sadly only a small number of individuals who have pension benefits have reviewed their pension plans on a regular basis. Many people hold a number of different pension plans and have no understanding of how their pension plan works, the charges, the risks or benefits the could expect to receive.
How much could you retire on?
Unless you review your pensions regularly, it is unlikely that you will have an idea of how much income you could expect to receive from your pension funds when you retire. The state pension is unlikely to be sufficient for the vast majority.
Need help with an annuity or drawdown?
If you are thinking of taking either an annuity or a drawdown at retirement it is advisable to search the whole the market to find the best option. If you want to buy an annuity, moving to another provider could give you a bigger choice and potentially a higher income.
Can you reduce charges?
Over the last 20 years, pension products have developed greatly and one of the main changes is that much lower charges exist with modern pensions. Charges have a direct impact on the returns and final benefits you will receive from your pension fund.
Has your attitude to risk changed?
The amount of risk we are willing to take varies at different stages of our life, depending on how low it is until you retire, how financially secure you are, or how much growth may still be required to achieve your objectives.
How much tax will I pay if I take my pension?
When considering taking your pension it is important to consider the tax implications as this could reduce your pension fund by as much as 40% in some cases. Getting professional pension advice will ensure you are fully aware of the options available and that you receive no nasty tax surprises.
How Much Could High Fees & Charges Be Costing You?
Simply transferring to a pension policy with lower fees, your pension could grow by £63,000
*Figures based on comparisons between pension policies charging 0.5%, 1% or 2% annual provider charges. Pension fund value assumed 5% annual growth. Based on a £70,000 pension fund and example client being 40 years old and retirement at 65 years. The graph is for illustration purposes only. Please note investments can go down as well as up.