The importance of a pension review – and why you need to do it, especially if you are within 20 years of using your pension funds. A lot can be done to dramatically improve your retirement prospects given time. However if you leave it too late, the chances of making significant improvements are limited. So here are a few reasons why a review could be one of 2014’s best decisions you made
- You have more than one pension and cannot keep a track of how they are performing. Consolidating your pots together could make keeping track of your pension much easier.
- You may not be satisfied with the level of service you are receiving from your pension company and your adviser if you are getting any at all. Many people receive no service at all.
- You are concerned that your pension or pensions may not be performing very well. Sadly, most people in pension schemes have little or no idea how their funds are performing from one year to the next.
- You may be unsure how much risk you are taking with your pension fund money. It is undeniable that in order to increase your pension value, some risk will need to be taken. However the risk you are taking may not be suitable for you.
- And how about just getting general health check on your pension and how it is performing
- Like many people you have accumulated lots of pension pots over the years from various employments. It may be beneficial to consolidate them all together in one pension.
- Consolidating your pensions into one pension may make it easier to keep track of how your pension is performing.
- Indentify poor performing pension funds and move them to investments that have greater potential for growth.
How a review of your pension works
You are likely to have one or more personal pension plans and they could be a stakeholder, a group personal pension, a personal pension, a retirement annuity contract or a free standing AVC scheme. Additionally, you maybe have also contracted out of the State Earning Related Pension Scheme or State Second Pension (SERPS or S2P) and into personal pension.
- The first step is to complete a Risk Profiling Questionnaire; this is designed to help identify what your attitude to risk is.
- The second step it to complete a fact find about your personal circumstances so that we have a full understanding of you current situation, your future goals and objectives.
- The third step is to obtain full details of all of your current pension arrangements. We ask pension companies more than 30 questions, so that we get a full and complete picture of your current situation.
- The fourth step is to complete a full and comprehensive analysis of your current pension arrangements, to identify if your pensions are working as they should be.
- Step five is to recommend a suitable investment strategy to move your pension forward, should the review reveal that your existing pensions are not working as well as they should be.
- Step six is to implement the recommendations, which may mean re-organising and consolidating your pensions into one pension fund.
- And finally step seven is to keep your pension arrangements under regular review to ensure that it continues to perform and meet your objectives
If you would like a review of your pension please contact Martin Dodd at firstname.lastname@example.org or 01902 742221