Pension Review Benefits - Top 10 Proven reasons to get your pension reviewed
I think you will agree when I say:
Knowing how to get the most out of your pension in recent times has become a hot but confusing topic. After hours of research on the internet you can be struck down by a minefield of contradictory information which can get your head in a spin!
Here at Pension Wide UK, we have the answer to all your pension related problems. We believe that a free, quick, FCA regulated pension review benefits you in more than just one way.
And in our below article, I’m going to explain the reasons why you should pick this approach to ensure that you accumulate the largest pot of money possible to enjoy once you hit retirement.
1. Utilise government changes to pensions in April 2015
As of April 2015, the government changed how pensions are managed. One of the main pension review benefits to highlight is that some people are not aware of how these changes affect them. The BBC said "anyone nearing retirement would do well to note the drawbacks, as well as the advantages" (BBC, 2015).
And here's the important part:
The changes affect how your pension is managed. It alters how you can access your money and what percentage is available to you tax free as well as what percentage is taxable. A pension review can help you to make the most of these changes and put the ball firmly back on your court.
2. Reduced pension management fees
By far one of the most overlooked pension review benefits is finding out what sort of charges you are currently paying on your pension. Some people are not even aware that fees and commissions placed on your pension pot annually can eat away at the underlying fund value.
While these charges are necessary it is worth noting weather or not you are being priced competitively within the market. This is an effective way of increasing your pension value without the need to pay in additional funds.
3. Improved Pension Performance
Many private pensions in the UK are in crisis, meaning that the critical yield is significantly less than it should be. This is because some pensions are mismanaged or in older stagnant funds.
Any pension yielding less than 5% is considered to be underperforming and has the potential to be improved. Thus a significant benefit to having a pension review is to see if the performance of your pension can be improved.
4. Personal Service
Many of the larger pension providers merely send a random statement once or twice per year. Having a Private Regulated Financial advisor is another of the major pension review benefits as you will receive a personal service unavailable through the standard channels.
Rather than having a nameless individual mange your pension whilst having no idea how and where your funds are invested, you get the choice of having your own advisor visit you once per year and discuss your goals and pension performance in person.
5. Setting objectives
Another Significant reason a pension review benefits you is your objectives. Objectives are normally set up when you first start your pension but many people forget that over time their objectives change. For example, an objective for your pension could be the age you wish to retire. Another objective could be your personal attitude to risk. Over time these objectives will obviously change you may have set your pension up 20 years ago but not reviewed your objectives.
If you wanted to put your children onto your pension as beneficiaries, you would need to complete an expression of wish. However, you may not have had children when you originally set up your pension. Therefore this is a very important objective of how your pension is managed that you may have overlooked.
We have a question for you; do you know how and where your pension funds are invested?
If you said no, then you would not be alone a pension review benefits you by giving you the control you need. When you have your own Regulated financial advisor, you are free to ask the questions you want to give you the peace of mind you need. For example: how and where are my funds invested? And most importantly why?
7. Options at Retirement
You may or may not be aware that there is more than one option when it comes to retirement. Especially with the new changes the government brought in last year. Recent research has shown that an annuity does not always offer the best value. Depending on your circumstances you may be better suited to an income drawdown.
This is yet another of the pension review benefits that you would exploiting should you decide to review your pension.
A pension review benefits many people by allowing them to consolidate several old and mismatched plans into one manageable fund. This makes accessing your pension pot easier and receiving advice much simpler. This can also contribute towards reducing your management fees. It also makes decisions regarding your pensions easier to implement as your advisor need only liaise with one Pension Company rather than many.
9. Are you on Benefits?
Some people will need to see if their benefits are affected by their pension. This is vitally important as how you take your pension and benefits can have a huge impact on your retirement plans.
A pension performance review can benefit you by making sure you have access to someone regulated and insured. They can give you the advice you need to make sure you are staying within the recommended boundaries of your entitlement.
Finally, one of the most helpful pension review benefits is knowing what’s out there. An advantage to an independent financial advisor is that they will take a view on the ENTIRE market place for you.
You could move to Aviva, Scottish Widows, perhaps Legal and General offer a plan that best suits your needs! rather than settle for the best options WITHIN your current provider let an advisor make you familiar with ALL the options available across the entire market place.
Of course upon reviewing the advisors may find that your pension is performing just fine where it is and that you are being fairly charged in this instance you will have peace of mind and it hasn’t cost you a bean.
Rest assured knowing a regulated advisor will NEVER recommend to move a GOOD pension.
Want a pension review that incorporates all of these benefits?
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