Do you have a mobile phone?

That’s a silly question, most people have a mobile phone. In fact globally, more people own a mobile phone than own a toothbrush! In this article, I will explore the importance of reviewing your pensions.  It will answer the question – when should i review my pensions?

When did you last upgrade your mobile phone?

When should I review my pensions?When did you last upgrade your phone? It is likely that this was in the last 2-3 years.  We often upgrade our phones to access the new technology and developments. This is because phones are constantly evolving and we want to remain up-to-date.

Well, pensions are like phones. They too are constantly evolving and changing.  For a lot of people however, they pay into a pension and pay little attention to where their money is actually being invested and often forget to make sure their pension plans are up-to-date. Older style pension contracts may have higher charges which will erode the value of the plan.  They may have access to fewer funds.  These funds may also be older style which are now closed to future investment.  Therefore these are often no longer actively managed.   As well as this older contracts may offer limited options at retirement as providers wont always up-date their old propositions.

When should I review my pensions?

If you haven’t done so in the last couple of years, it is a good idea to review your pensions  not only to ensure that they are still right for you but also to ensure you are on track to achieve the retirement that you desire.  It is also beneficial to review your pensions to ensure that they are invested appropriately and in line with your attitude to investment risk.  When I meet with clients, they will often have a box with all of their pension paperwork within it. Yet they will have no idea how much their pensions are worth, where they are invested, what the charges are let alone whether their pensions will meet their retirement needs.

A surprising number of people do not realise that they may have pension funds from previous employers. One of our clients recently discovered a pension plan worth £49,200 that he had from an employer 30 years ago. The client had moved address a number of times so the Company had lost touch with him.

It is especially important to review your pensions before your intended retirement age.  People may miss out on retirement options available to them as they do not fully understand what these are. Sometimes, once a decision has been made, it cannot be undone.

So in answer to the question when should I review my pensions? If you got a new mobile phone more recently than you last looked at your pension, I would suggest a review of your pension is overdue. Contact me for a complimentary, no obligation initial meeting.

Tax rules, rates and allowances are all subject to change and are dependent on individual circumstances. The Financial Conduct Authority does not regulate tax advice and some forms of offshore investments. The value of investments and the income from them can fall as well as rise and you may not get back the full amount you invested

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