Pension Reviews

You may be wondering why you should bother to have your pension reviewed. Especially if you have held your plans for a long time and they seem to have performed well. It is similar to your car or house insurance, you may have been happy with it for the last year but it’s still worth checking the price and cover when it is up for renewal.

Over the last 10 years the pension industry has been hit with a whole raft of legislation changes, from the Retail Distribution Review (RDR) in 2012 to “pension flexibility” rules in 2015. Coupled with technological changes, the wider use of the internet and the ever-changing behaviour of investment markets, comparing old pension plans to new pension plans can be very difficult.

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

Pensions advice

 

However, here are three common reasons why switching your pension to a modern pension plan could be beneficial:

  1. Older pension plans tend to be restricted in the number of investment funds available. Newer plans can have access to over 4,500 investment options meaning you can choose the investments that best suit your circumstances and objectives. Being part of the Intrinsic Network enables us to find investments that best suit different types of clients and may be able to recommend an appropriate fund for you.
  2. Some pension plans are built for accumulation only. This means that if you are wanting to access your funds in certain ways then you may need to switch to a plan that will allow this
  3. If you have a number of old pensions it can be worth putting them all together to create one larger pension plan. This can reduce charges and make the ongoing administration of the plans easier for you.

Of course these are just examples and may not apply to your individual plans or circumstances.

 

It is also important to consider what you might lose if you switch a pension plan:

  1. Some older pension plans have certain guaranteed benefits. These can be very valuable and better than what you would get today.
  2. Older pension plans tend to be cheaper than new plans. Does the benefit of switching outweigh any additional cost?
  3. There are normally costs involved in switching a pension plan, it is important to make sure that these costs are worth any benefit gained.

When reviewing pension plans it is important to weigh up any benefits gained to benefits lost. This can be a complex task and can leave you unsure of what the best option is. This is where financial advice comes in.

Help is at Hand!

My review service aims to hold your hand through the entire process. I will write to your pension provider to gather all the relevant information about what your pension does and does not contain. I will then compare this to what is available from other plans with other providers and find out what the best course of action is for you. I would then sit down with you and go through all of these details and make sure you understand what my recommendation is and why. Finally, if you are in agreement, we will put the plan in to action and make sure the process goes as smooth as possible.

Pension reviews can be a long complex procedure but working together we can make sure that you make the right decision for your future.

Contact us today to review your plans

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