If you haven’t reviewed your pension savings against your retirement income goal yet, it’s probably time you start catching up. There are several ways that you can get the most out of your pension and have more control over your investments and savings.
You can make the most out of your pension provided you plan things carefully and work to grow your savings pot. That said, here are some exciting ideas to consider to have more control over your pension.
1. Bring All Your Pension Pots Together
If you have worked for different employees in your working career, the chances are that you have several pension pots. If so, then you need to start working out a way to consolidate all of these pots into one place. This makes it easier for you to monitor and manage all your pension savings.
You can also get pension advice from a professional to help you through all the small print documentations involved. Some companies also offer SSAS pensions, which they manage independently. You only need to get in touch with the directors to provide you with all the necessary documents for the consolidation process.
2. Understand All Costs Involved
Pensions come with different charging structures. Thus, the reason why you should look under the bonnet of all expenses incurred. Don’t let your hard-earned pension get stung by nasty hidden charges that you didn’t know about.
3. Watch Out for Mis-Sold Pensions
Over the years, the number of mis-sold pensions has been rising, with many people claiming compensation for several financial losses. If, however, you believe that you have been a victim of mis-sold pensions, mis-sold QROP, or SSAS, or given any sort of misinformation, can file for compensation.
Be very careful with what you tell a pension introducer. In fact, it is best to hire a pension adviser to check and double-check every detail and ensure that everything is in order. It’s critical to note that a pension adviser is separate from a pension introducer. Pension introducers are generally not authorized to give financial advice about pension investments and transfers.
4. Get Claims Advice
With the many options for pension plans and investments currently available, you can easily be misguided and make poor investments. It can, therefore, be difficult to know which investment plans will actually help to boost your pension.
Many people lose a lot of money when the companies or businesses that they invested their pensions in goes bust or develops other issues. You must, therefore, ensure that you get claims advice from a professional pension advisor. Seek advice from someone with the expertise for the job to help you secure your hard-earned cash.
5. Prepare for Rainy Days
Should you decide to invest your pension under drawdown means that if the market falls, your investment pot may reduce significantly. With it, the overall income that you expect to draw from it. The wisest decision in such a case is to temporarily reduce the total income taken to reduce the amount of income that’s taken.
Typically, with every investment that you make, you want to avoid any risks that may make you run out of money. One option you can consider is to hold your cash reserves to protect your action reserves, especially during market dips.
Bottom Line
Pensions have generally become the new intergenerational savings vehicle that you must strive to protect and possibly grow. Even your grandchildren can benefit from your pension, depending on what you use it for. Different pensions like the QROP and SSAS come with several advantages that both you and your family members can enjoy. Get claims advice today for the best way to grow your savings.
