What does the pensions review process involve?
During a pension review, a regulated financial advisor will look over your pension and investment products to see if they are performing as well as they could be. Your pension review process may involve an advisor looking for the following:
Underperforming investments and/or expensive management fees that are restricting your financial goals
If your current pension products fit with your attitude to risk (or if you’re unsure, an expert can work with you on this)
If they are currently on-track to meet your retirement income goals by a desired age
Whether you should merge your pensions together (pension consolidation) or keep them as single pots
Once your financial advisor has made a full assessment, you can make a fully informed decision on how to approach your pension management. An advisor can also find products that are more appropriate for meeting your financial goals.
Why should I have a pension review?
Your pension is your income when you finish your working life. You need your pension to be working as hard as possible to give you a comfortable lifestyle.
If you set up a scheme which has been following the same investment approach since day one, you may find that your pot wouldn’t have accumulated enough funds to support you during retirement.
And this is where the benefits of pension reviews become apparent. For example, you could find that the 5% you’re paying in annual fees for three separate pension funds could be transferred into one single fund with lower management fees, thus reducing annual fees.
Alternatively, a pension review could reveal that your original options are performing poorly, and that by transferring to a different pension plan, your funds are likely to grow at a faster rate. This could then be reviewed again the following year.
If you miss taking advantage of fund growth for even a few years, it could have a huge impact on the future value of your pension pot and therefore your retirement income.
Whether a pension transfer is right for you or not is an individual decision which should be made after reviewing detailed information based on your present set-up and future requirements.
Contact me. I will be happy to conduct a free review of your current circumstances and help with whatever questions you may have.
Rob.
E:robert.gourlay@holbornassets.com T:(+6)01151565649 W:www.rgwealthsolutions.com
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