Are you starting to prepare for your retirement? You may wish to complete a pension review. A pension review is typically an essential part of retirement planning and allows you to make sure that you will be secure financially when you lose your permanent income.
What Is A Pension Review?
Simply put, a pension review is a way to check how well your pension is performing. Is it generating the level of finances that you had hoped it would and are you on track for the level of pension you wanted by the time you retire?
Pension reviews can include various different pieces of information including:
- Total annual fee
- Level of growth
- Type of investments
- Ability to provide the right retirement
As you can see, a pension review will essentially show you whether changes need to be made during the pension planning stage. For instance, if the type of investments that you are currently using is not providing the level of growth that you need, then it may be worth looking at different investment options that could generate better results.
Who Completes A Pension Review?
A pension review can either be completed by an individual or a company working for an individual. Ultimately, this will be to make sure that the pension is providing the benefits that they require.
What Can You Learn from a Pension Review?
You can learn a lot from a pension review. The best and simplest way to look at this is through an example. Remember, you can start a pension review at any age, assuming you are already planning your pension. For instance, someone at thirty could theoretically conduct a review. This would provide them with a great start for their pension.
They might find that their annual fees are quite low and that they are currently involved with low-risk investments. However, by moving to high-risk investments, they would have lower annual fees. There could also be a good chance that the funds would grow at a faster rate too.
I had a private pension not working for me and an old works pension that was frozen. Tim put them both together and got them working for me. It is working well, just wish I met Tim 20 years ago. He is doing a great job. Tim has been my adviser for 4 years and my pension has increased by almost 50%. Thanks Tim. Janice P, Birmingham – Client Since 2015
A pension review does not mean that you have to make these changes. It simply provides you or the company with all the information so that an informed decision can be made
Other Benefits of a Pension Review
There are various benefits of a pension review that you should keep in mind. First, you might have your pension spread across several different plans. With a pension review, you can begin the process of transferring all your pensions to a single provider. This will mean that keeping track of your pension and your finances will be easier. You’ll be able to see more clearly whether your pension is on target.
You might also find that your current pension plan is simply outdated and not in line with the economy of today. With a pension review you or the company can work to change your pension and ensure that it provides the benefits that you need. Ultimately, you can make sure that it is performing at the level you want or at least, increase the chances that it will.
A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.