Five Occasions That Should Prompt You To Check Your Pension
Most of us are guilty of putting pension planning on the back-burner. However, the fact is, the earlier you start saving for the future, and the more you put into a structured, balanced pension plan, the more likely you are to enjoy a comfortable retirement. These are just five occasions when it's essential to review your pension arrangements.
1. When You Start a New Job
Many roles will come with an automatic enrolment of the workplace pension. So, find out how much you'll pay every month and whether your employer's contribution will increase with any voluntary contributions you add on top. You may find that your workplace offers a pension calculator, which is a valuable tool to indicate how much you could expect to have accumulated by your planned retirement age - at least 55 now, and 57 from 2028.
This is also a good time to check any previous pension pots from earlier jobs, and see whether there could be a benefit to transferring them into the one pot. This can offer more control and you might want to consider a Self-Invested Pension Pot, or SIPP, for ease of management.
2. When Taking a Career Break
Whether you are starting a family, becoming a carer, going back to full-time education or simply taking time out, you'll need to have a plan for your pension. If you have a partner, now is the time to discuss your contributions and make a plan that works for you both. You don't want to miss out on tax relief, after all - it could be worth 20% on contributions of up to £2,880, even if you aren't earning.
3. If You're Divorcing
It's important to know what your pension is worth and what your partner's is worth too so that these assets are divided fairly. The Pensions Policy Institute has found that 70% of divorce settlements failed to include pensions.
4. If You're Approaching 50
This is the traditional time to really take stock of your pension and see whether you need to start increasing your contributions, changing your asset classes or generally restructuring your pension to be in the best possible position for when you plan to retire. A pension planner can assist greatly with this stage and offer valuable, practical advice in line with your goals.
There is no time like the present. In fact, you can even set up pensions for children from birth, so it really never is too early to consider your long-term financial future. If you aren't sure where to start, a financial planner is the obvious first step, and this kind of professional advice could save you time, money and mistakes later down the line!
If you're looking for a financial planner that you can count on, contact Integritas today.
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