Her Majesty has spoken – action is needed!
Don’t panic, this isn’t about Brexit, it’s about you and your pension savings.
As part of this month’s Queen’s speech, it was announced that a pensions dashboard would be launched. This initiative, first discussed back in 2016, will be an online tool to help you keep track of how much you have saved in your private, workplace and state pension pots.
Being able to track pension savings in one place is becoming more important than ever before. Employees now average 11 different jobs during their career, which means you are likely to have many different pots, scattered randomly through the annals of time.
When the dashboard becomes reality, it will be much easier to find and follow your pensions’ performance, but don’t stop there. What we really want you to concentrate on is reviewing them!
Have a conversation about consolidation
There are a couple of questions I’m often asked by clients. Firstly, are my pensions good enough to see me through retirement? And should I consolidate them?
Without knowing the ins and outs of your situation, the answer in both cases will be maybe! We would firstly need to check your paperwork, to see if your pensions have any valuable clauses, such as guaranteed annuity rates or a guaranteed minimum pension. We’d also need to review the charges you are paying, how and where your money is invested and the performance of the investments.
To highlight this, I’m going to give you an example – let’s call them Mr and Mrs Typical. They are in their early 40s and contacted us to undertake a retirement review. They have more than £100,000 saved in pensions, split between four pots and are pretty confused by how all of the above is going to impact on their retirement.
This is where Belmayne can help. Firstly, we understand the information contained within the paperwork your pension providers have sent and will work out what impact your current provision will have on your retirement. We ask questions on your behalf, look at the available data and then explain our findings to you in a clear, jargon-free way. Crucially, we do not charge for this analysis.
Once we have these results, we can check if you are on target to have a comfortable retirement and look at whether you could be paying less fees or your pension money could be better invested.
Part of this analysis, is discussing consolidation and there’s a number of reasons why it might be beneficial, namely:
• You can check your retirement pots are on target
• It could make it easier to track performance
• It could reduce your charges
We completed a review for Mr and Mrs Typical and had a meeting to explain our findings, at which our recommendation was to consolidate their pensions. This was to align their investments to their risk profile and reduce the total ongoing charges they were paying.
Now Mr and Mrs Typical understand their pensions. From here on, we will conduct regular assessments and provide an ongoing service to them (fees apply, click here for details.)
If you are in a similar pickle to Mr and Mrs Typical and think it’s time to start making sense of your pensions, please contact me – our initial review of your pensions is free. For information, telephone (01246) 298181 or email: firstname.lastname@example.org
To find out more about the forthcoming pensions dashboard, click here.