“Why review your pensions?” is a question we are often asked by potential clients. Our answer is a simple one; an annual review of your pensions by an FCA regulated adviser is an essential part of your retirement planning. With the state pension alone unlikely to provide the retirement you want; it is vital to ensure that you have sufficient funds in your pension pot to fund the retirement you deserve.
Is it really free?
Yes, the initial review and recommendations will not cost you a penny. If you decide to work with us beyond this point, our fees and charges will be clearly explained.
A free review will give you the following:
- A clear view of your current pension and how it is performing
- A breakdown of the fees and charges you are currently paying
- An analysis of your current situation and what you want to achieve in the future
- A recommendation of how your pension savings can be best used to achieve your goals
- A presentation of the pros and cons of transferring your pension pot
- Clear and transparent costs for following our recommendations
So perhaps the question shouldn’t be “why review your pensions?” but “why wouldn’t you review your pensions?”
The review explained
Finding the pensions
The first thing your adviser will do is help identify all of the pensions you have paid into during your working life. With most of us having multiple employers during our careers, it is perhaps unsurprising that there is some £400 million in pension pots currently unclaimed. Your adviser will also be able to discuss with you the pros and cons of pension freedoms as well as products specifically aimed at the over 55’s.
If you do have an old pension which you have stopped paying in to, this will now be what is called a ‘preserved’ pension. The pension pot will be still be growing but its performance may well be less than other schemes. If you have two or three of these ‘preserved’ pensions it can have a big impact on your final pension pot.
With all of your pensions identified the adviser will examine key elements of the schemes to give you a true picture of your retirement savings. Firstly, the review will identify what charges and fees you are paying, which can come as a surprise to some pension holders. Secondly, a pension review will look at performance, both over the short term and long term, to see how it compares with other pension options. The third review element is appropriateness; for example, if you are closer to retirement you would expect the pension investments to be low risk.
Pension review complete your adviser will be able to give you an accurate picture of what you can expect in retirement and compare that with what you could achieve by moving some or all of your pension savings into a better performing fund, even small tweaks can make a major difference to your pension pot. Moving funds could also benefit from lower fees and charges and potentially be easier to keep track of. Any recommendations given will of course take in to account any exit fees on your existing schemes.
If you decide you do want to transfer some or all of your funds we would be delighted to help. Your adviser will provide you with a no obligation quote for carrying out the work and a likely timescale for the transfer process.