Is Your Pension Still Right for You? 7 Things Worth Reviewing

Pensions are often set up and then left running in the background for years. You may have changed jobs, built up several pension pots or simply not looked closely at your arrangements for some time.

As your circumstances and retirement plans change, it is worth checking whether your pension still reflects what you want to achieve.

1. Do You Have Several Pension Pots?

Changing jobs can result in several workplace pensions with different providers. Start by establishing exactly what pensions you have and ensuring your details are up to date.

Combining pensions can sometimes make them easier to manage, but it isn’t always the right option, particularly where an older pension includes valuable benefits or guarantees.

2. What Are You Paying in Charges?

Pension charges are easily overlooked as they are normally deducted automatically. Small differences can add up over the long term, so it is worth understanding what you’re paying and what you’re receiving in return.

3. Where Is Your Pension Invested?

Many workplace pensions automatically invest contributions into a default fund.

That may be suitable, but your investment choices should ideally reflect your circumstances, objectives and attitude towards risk rather than simply being left unchanged for decades.

4. Has Your Attitude to Risk Changed?

How you view investment risk can change as you get older and retirement gets closer.

Someone with 25 years until retirement may have very different priorities from someone planning to stop work within five years. Reviewing the level of risk within your pension can therefore be important.

5. When Do You Want to Retire?

Perhaps you originally expected to retire at 65 but would now like to finish earlier. Alternatively, you may intend to work longer or gradually reduce your hours.

Your retirement date affects how long you have to build your pension and how long your savings may need to support you.

6. Are You Saving Enough?

Having a pension doesn’t automatically mean you’re on track for the retirement you want.

Think about the lifestyle you would like in retirement and whether your current contributions and pension savings are likely to support it. Identifying a potential shortfall earlier gives you more time to consider your options.

7. Have Your Circumstances Changed?

Marriage, divorce, children, a new career, higher earnings or becoming self-employed can all change your financial priorities.

It is also worth checking details such as your nominated beneficiaries to ensure they still reflect your wishes.

When Did You Last Review Your Pension?

A pension review doesn’t necessarily mean changing or transferring anything. It is about understanding what you currently have and whether it remains suitable for your plans.

At Clear Finance, we can help review your existing arrangements and consider how they fit with your longer-term retirement objectives.

Looking for pension advice in Doncaster? Contact Clear Finance to discuss your existing pensions and future retirement plans.

The value of investments and pensions can fall as well as rise, and you may get back less than you invest. Pension and tax rules can change and will depend on individual circumstances. This article provides general information only and does not constitute personalised financial advice.