It has been estimated that there could be 1.6 million unclaimed pension pots out there, worth £19.4 billion, which have either been lost or forgotten. That’s the equivalent of nearly £13,000 each, which in the current cost of living crisis, could go a long way to improving your retirement.
Research commissioned by the Association of British Insurers (ABI) has found that although the majority of people think about telling their GP or dentist when they move house, very few think about telling their pension provider about their change of address. As a result, as many as 1 in 30 people could have a pension they didn’t know they had. That’s why we’re supporting the National Pension Tracing Day on 30th October. To make sure that you don’t lose out, you should check the whereabouts of all of your pensions and claim back any that may have been misplaced. If you’ve moved house or changed jobs, you could have an old pension waiting to be found. The first step to hunting down your lost pensions is to look through any paperwork that you might have. Hopefully, you’ll be able to find either an annual statement or the starter pack you received when you first joined. Failing that, you should look through your old employment contracts or payslips for any signs of pension contribution deductions, paying particular attention to details of the scheme administrator or pension company holding your money. If you’re not able to find any paperwork, then get in touch with your old employer. Explain why you’re contacting them and ask for the name of the company’s pension provider at the time that you worked for them, together with their contact details. Alternatively, you could use the Government’s free Pension Tracing Service. Please note though that the service won’t be able to give you any values or plan numbers, but it may be able to help you find contact details for your pension. Finally, once you’ve found your pension and reconnected with your provider, you’ll want to review the plan to make sure that your investments still match your attitude to risk and objectives. You should also check what fees you’re paying, what the scheme rules are around your retirement age and how you can access your plan. If you are looking for expert financial advice to help you with your pensions and retirement planning, please do not hesitate to contact us for an initial no obligation consultation at our cost. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). Your capital is at risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Perhaps now more than ever, it’s sensible to review your pension, and at Podium Financial we’re seeing an increase in clients contacting us who find themselves in one of three situations with their retirement plans following the pandemic.
1) Your retirement plans have slowed down Your retirement date has been pushed back. You’ve decided not to retire at this time as you are unable to enjoy retirement because celebration events (such as dream holidays) are not possible. How I can help you
2) Your retirement plans have speeded up Your retirement date has been moved forward – possibly outside of your control due to redundancy. You could be under pressure to access your pension earlier than you planned or want to. How I can help you
For the first time you have found yourself wanting to know when you can retire. You are suddenly motivated to sort out your retirement plans and get them into shape. How I can help you
Making informed decisions sooner rather than later could make a big difference to the quality of your retirement, and although retirement planning can be complex, Podium Financial are here to make sure that your retirement plans are as good as they can be. If your pensions can be improved, we will explain how and discuss the next steps with you. We offer a completely independent advice service without restriction or bias. This means that as a fully independent financial adviser, we are able to research the whole of the market and select the most appropriate products and services to meet your needs. A pension is a long term investment not normally accessible until age 55 (57 from April 2028). The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. 1. Review your existing pensions regularly
It is sensible to review your pensions at least once a year to help ensure that you are on track to meet your retirement goals and to understand what your pensions are likely to provide for you when you retire. Put simply, not reviewing your pension could have serious implications for your comfort in retirement, as you don’t want to find out that you’re not on target to achieve the standard of living you want in retirement when it’s already too late. Make sure you understand how your pensions are performing and keep an eye on any under performing funds. You should also beware of high charges. Typically, pensions have lower costs now than they used to, so if you have older pension plans that were set up some time ago, you may be paying more in charges than you should be. 2. Join your company pension scheme It makes sense for most people to join their company pension scheme. These schemes are usually good value and auto enrollment means that all employers now have to pay into eligible employees’ pensions. 3. Choose the right investments for you When choosing investments within a pension it can often pay to spread them around to reduce the level of risk. For example, investing in just one fund can carry the risk that if that fund manager performs badly, your entire pension fund will suffer. Investing in shares is likely to give you the best long term returns, although as your pension fund gets bigger and as you get closer to retirement you may want to hold more money in other assets such as cash, fixed interest and property, as capital protection becomes as important as capital growth. 4. Don’t forget about your State pension! From April 2020, the full new single-tier state pension is £175.20 a week, meaning that those who are entitled to it will receive over £9,000 a year. To find out what state pension you could be entitled to and when you’re likely to receive it, you should obtain a State pension forecast. These can be obtained online at https://www.gov.uk/check-state-pension. Also see whether there is anything you can do to boost this, such as making extra contributions. 5. Take independent financial advice Retirement planning can be complex, and getting it wrong could have a huge impact on your standard of living in the future, so it’s important to make the right decisions to achieve your retirement goals. If you’re not entirely sure what you’re doing, then you should take independent financial advice and contact us now on 01428 909266 or at info@podiumfinancial.co.uk for an initial no obligation consultation at our cost. A pension is a long-term investment not normally accessible until 55. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. |