Are your Pensions collecting dust ?
Unlike times gone by, very rarely do people stay with the same employer for 40 years these days. Jobs are often transient and so it is quite common to end up with multiple pension plans throughout your career.
We see our annual statements come through the door, we look at them, we have no idea what they are telling us and so we file them away until next year’s statement lands. Individually they may mean little to us, however when looked at as a whole, the picture starts to develop.
If this resonates with you, please take some time to dust off your paperwork and see what plans you may hold.
Like everything else in the world, Pension Plans have evolved substantially over the years and what looked good then may be not quite as attractive now. Even Stakeholder pensions once trail blazed as the benchmark for pension charges, in 2001, may now look a bit tired.
Additionally, the funds you invested in may not be in line with your current risk tolerance and investment preferences, so you could be taking more or less risk than you are comfortable with. It is very unusual for the same funds and investments to be consistently the top performers year after year and therefore reviewing your funds against its peers is very useful to reaffirm value for money and ensure you are on track for your retirement.
If you are lucky enough to have plans set up in the 1980s and 1990s, there may even be benefits held within your plan you are not aware of.
The problem is, how you do you know?
That’s where a good Financial Adviser can come in. They have the systems, knowledge and expertise to analyse your existing plans features and charges, and the funds you are investing in.
An adviser will then be able to help you understand and give you a full picture on what you have, how good it is, how it suits your needs or doesn’t, and outline proposals on how you may be able to improve your financial plans to ensure they align with your retirement aspirations and goals.
You don’t know what you don’t know…