Reviewing your pension

The value of pensions and investments and the income they produce can fall as well as rise, you may get back less than you invested.

 

Tax treatment varies according to individual circumstance and is subject to change.


Ongoing reviews are part of the service we provide for our pension clients. There are many reasons why it might be advisable to take a fresh look at your pension arrangements.

Has your pension been reviewed recently? Look through the following questions, to see whether it’s worth us taking a look at your pension.

  • Am I going to reach my target for retirement income?
  • Are my charges too high?
  • Is the level of risk in my pension funds appropriate for me?
  • Does my plan match my present circumstances?
  • Am I making the most of currently available tax breaks?
  • Do I understand how past pensions and current pensions operate?
  • How high is the level of service from my present provider?

There are two reasons we believe frequent reviews of pension arrangements are necessary:

  • To take account of any changes that may occur in your circumstances; and,
  • To keep your funds abreast of market developments.

The amount you pay in to your pension

Do you worry about the level of contribution into your pension?

It’s likely that your early pension payments will not be as high as you would have liked. But as your earnings grow, and perhaps your outgoings become less, it might be worth looking at increasing your contributions.

Bear in mind that if your income is rising, so might the income you would like to receive on retirement. It’s crucial to keep sight of the target income you’d like when you stop working. That way your contributions can keep pace with your targets.

Occasionally, too, you may be in a position to make a large one-off payment, thanks to things like bonuses or inheritance. Lump sum payments benefit from the same tax breaks as regular payments. So they make a great deal of sense if you wish to increase your pension pot.

Boosting your investment

As you might expect, the way your pension pot is invested can make an enormous difference to the eventual value of your funds. We will obviously match your investments to your appetite for risk. But, as retirement approaches, it can make sense to switch your investments into less volatile funds. In all likelihood this will reduce potential returns, but provide a safer home for your money, giving you more certainty as you approach retirement.

Trends in the pension market

How do you keep up with all the pension legislation changes?

Pension legislation often changes. And so does the market. Product innovations can bring new benefits to pension savers.

The levels and rates of tax, relief and allowance are subject to change, and they can affect people in different ways depending on their circumstances.

If anything the past few years have underlined this with major changes in allowance for pension contributions and funds and the changes to the ways that people can take benefits from the pensions. These developments have increased the choices open to pension savers and those cashing in benefits, while reducing the amount that the wealthy (or fortunate?) can shelter form tax in their pensions.

Our on-going review process means that we keep you abreast of these opportunities when they arise.

Contact us to find out whether it’s worth reviewing your pension