Pension Review – 5 reasons to review your pension

We all work with the future in mind. While careers are, hopefully, to be enjoyed, there is nevertheless a rewarding feeling that at some point we will be in a position to retire, financially secure, and able to live life to the fullest amongst friends and family.

One of the key elements in achieving this is saving money through our pension(s). But despite pensions being such a fundamental and crucial part of our futures, it is surprisingly easy for them to fall off the radar as we go about our busy daily lives.

However, by not keeping an eye on the performance and status of our pensions, we risk the prospect that their full value – and the money we pay in – are not fully realised.

Here are five reasons why a pension review is a very good idea.

1. Do you have multiple pensions that could benefit from combining into one? 

Research from Investec suggests the average UK worker will have six jobs over the course of their career, while the dynamic, changing nature of the way we work means this is likely to increase in the future.

As such, it’s highly likely that any given individual will amass a number of different pension pots over their working life.
A review with a view to consolidating into one scheme can have numerous benefits.

Firstly, it makes tracking pension savings easier.

It also offers an opportunity to analyse long-standing legacy pensions which may not have been looked at for a number of years – if not decades.

Are they working as hard for you as they could be doing?

2. Are you getting the best return for your money? 

Pensions are complex and susceptible to external changes – be that the financial landscape or government legislation.

As such, there is no guarantee that a pension scheme that worked for you previously is still working as hard. Could this be eating into your final lump sum?

You work hard for your money and it is absolutely right that, when the time comes to retire, you receive the full value of what you have worked so hard to save over many years.

A pension review can help ensure expectations – and the true value of your savings – are fully realised.

3. Could you be paying more/less into your pension? 

There’s a pretty simple logic that the more you put in, the more you get out.

That’s certainly true to an extent – and paying more into your pension can result in more value when the time comes to release your pension pot – however a poor performing pension could cancel out any future gains you anticipate from paying more in.

A good, experienced financial professional can advise on the right personal plan to ensure you are both paying the optimal amount per month and that you’re paying into a pension scheme that is in your best interests.

4. Is your retirement plan still the same?

Our lives are in a constant state of flux. If you were having a big birthday party tomorrow, would the guest list be the same as it was five years ago?

Situations and circumstances change, none more so than our plans for retirement, how much we will need, what we need it for, and what (and to whom) we wish to leave money to.

A pension review can help focus the mind and ensure a previous vision for retirement still holds true. If not, what can be done to ensure our revised plans are maximised to the full?

5. Are there any tax-related matters to take into consideration?

As previously alluded to, legislation and financial changes are not uncommon. What was a perfect plan a decade ago – or even a couple of years ago – may no longer be the most appropriate course of action.

A pension review helps ensure you and your finances are always up with the curve and this can, ultimately, both save and make you money for when the time comes to put your feet up.
At Wills & Trusts we are about far more than just numbers. We recognise that every individual is unique and each circumstance different.

Our dedicated, specialist pensions team work tirelessly for our clients to ensure their financial estates are a true and just reflection of the work and effort that has gone into them.

Why not contact us today so that you have peace of mind that your accruing pension pot is working hard for you and, by proxy, your loved ones.

Paula O'Reilly

May 6, 2021