Pensions advice: 5 reasons to get your pension sorted!
Running a local financial advice firm in Cheltenham we see so many people who have no idea what is happening with their pensions. It’s too common an issue! This effects everyone, I met an accountant last week who had no idea even of the value of his pensions! There are many reasons why this is the case, but today I want to talk about why you should do something about it today!
1) Investing well
If you’ve done nothing about your pensions, then you’ll have no idea what they are invested in. The difference between the best performing funds and the worst performing ones can be enormous, and over twenty plus years can make the difference between early retirement and working forever!
2) Costs
Do you know how much your pension costs every year?
There are all sorts of different charges that get put on pensions, and that’s fine, but as with anything you should be happy with what you’re getting for that cost. Review what you’re paying for your pension compared with other options and make sure you’re happy that this is serving your best interests over the long term. Bringing all your pensions together can also reduce your charges as some providers give discounts for higher amounts.
3) Know what you’ve got
I bet with your bank accounts you have a pretty good idea how much is in them, and how to check!
Make sure your pension can be easily and quickly checked up on. As we ususaly have multiple pensions this gets even harder, but some providers have good online capabilty and apps to help you keep an eye on your assets!
4) Get a clear Retirement Plan
This is the whole point of a pension!
Make sure you can retire on your terms.
Get a plan that includes all of your pensions, as well as your other savings and assets (including property) You’ll then know if you need to pay more, and when you will be able to retire.
5) React to Life Changes
Having a plan is great, but we all know that things change. When they do, your retirement plan needs to react to that change. This is much easier to do when you’re in control of your pensions and your plan. You can put in more, less, change your investments or maybe change your retirement date.
When shock change happens, the last thing you are going to want to do is sort out your 6 pension pots!
I’m a Pensions and retirement nerd and would love to talk you through your options if you’re interested. Parker Financial Advice are independent (IFAs) based in Cheltenham, who choose products from the whole of the market. We want to be your trusted advisers.