Many of us collect a new pension with every job we take. This means over time we amass a collection of pension policies with varying terms and conditions. Some provide extremely valuable benefits and some lacklustre. Unfortunately, most people will stick the policy in a draw and hope it will be OK.
It is important to understand what benefits you have; otherwise how will you know if you have enough to retire on or when you can retire. A pension review can set out what benefits you have acquired and their value at your chosen retirement age.
Whilst carrying out a pension review The Pension House will advise and recommend alternative solutions for those lacklustre arrangements that can be improved. It is important that your pensions work hard for you to ensure you get the best benefits at retirement. Leaving pensions in a draw and hoping that somehow it will be alright is simply not good enough. For example, imagine you have amassed 6 different pension products over time. This means you will be paying 6 different providers to administer your plan. That’s 6 lots of admin charges. If some or all of these were consolidated into one arrangement, you would likely reduce the charges as you only need to pay one administrator rather than six. Also, by combining your pension assets you now have a much larger sum of money to invest and this is attractive to pension providers. Providers often reduce their charges based on the amount being invested.
With 10 or more years to your chosen retirement age these savings can significantly increase the value of your pension at retirement. Charges on new products are significantly
lower than many older products simply because ‘commission’ is no longer paid to introducers. If your products predate 1 st January 2013 it is likely you still have those older higher charges on your pension assets.
The Pension House provide a pension review service. The first hour of the consultation is provided without charge (and is) where we meet here in our offices at the Barn. We will only recommend you consolidate your assets if it is in your interest to do so and that is inclusive of our fees. If we can’t improve your situation, we will tell you.
Never be afraid to take advice. The benefits will outweigh the cost. Ensure you take advice from a regulated adviser.