How to Check Your Pension and When to Review It?
*5 mins read*
Contributing to your pension is essential for your retirement, but regularly reviewing it can be just as important. Keeping an eye on your pension’s performance and ensuring it’s on track can make a significant difference in your retirement savings.
However, many overlook this crucial step. Recent data shows that a third of people in the UK rank pension admin low on their list of priorities, and some have never reviewed their pension at all. Others admit they don’t know how to access their pension information.
This article will guide you through how to check your pension, how frequently you should review it, and how a financial adviser can support you in managing your pension effectivelKey Points:
- Reviewing your pension at least once a year is important for your long-term financial planning.
- You can check details such as fund performance, fees, and how much your pension pot is worth through online portals.
- A financial adviser can help you stay on top of your pension investments and retirement plans.
How Can You Check Your Pension?
When you first enrol in a pension scheme, you’ll usually receive details about how to access your account, either by post or online. This might include login details for an online portal where you can manage your pension.
If you don’t have this information, your employer or pension provider can help you get access.
What Should You Look for When Reviewing Your Pension?
When checking your pension, several key pieces of information can help you assess its health and performance:
- Your pension pot’s current value
- A pension forecast (an estimate of future value)
- Where your money is invested and how the funds are performing
- The risk profile of your investments
- Annual management fees
- Statements summarising your pension’s performance
Reviewing these details regularly ensures that your pension is working as hard as possible to support your retirement. Although some fluctuations are normal in the short term, if your fund consistently underperforms, you might want to consider changing your investment strategy.
It’s also worth paying attention to fees, as high fees can reduce your returns over time. Finally, evaluate whether your pension fund aligns with your financial goals and risk tolerance, especially if you’re considering ethical investments or taking more or less risk based on your age and circumstances.
How Often Should You Review Your Pension?
A good rule of thumb is to review your pension at least once a year. Regular reviews allow you to check performance trends without making decisions based on short-term market volatility. This approach will help you make more informed decisions and avoid the pitfalls of reacting emotionally to temporary dips or gains.
How a Financial Adviser Can Help
A financial adviser can provide expert guidance to help you stay on track with your pension and broader retirement plans. They can:
- Develop a tailored retirement strategy that suits your needs
- Review your pension’s performance and suggest adjustments
- Help you manage your pension tax-efficiently
- Advise on pension consolidation and transfers
- Ensure you make well-informed decisions about accessing your pension when the time comes
If your pension is worth over £30,000 or if you’re considering transferring from a defined benefit scheme, professional advice is a legal requirement. Working with an adviser ensures you’re making the best choices for your future.
Have You Lost Track of Any Pensions?
It’s common to accumulate several pensions over the course of your career, and it’s easy to lose track of them. Fortunately, there are services available to help you locate any lost pensions. The government offers a free pension tracing service, which can be a good starting point if you’re missing information about a personal or workplace pension.
If you’re thinking about consolidating your pensions, consider factors such as investment performance, fees, and whether consolidating would cause you to lose any valuable benefits, like a guaranteed annuity rate. An adviser can help you weigh up the pros and cons and decide what’s right for your situation.
State Pension: How Much Will You Get?
The state pension may not be enough to cover all your retirement expenses, but it can still be a helpful supplement. To qualify for any state pension, you’ll need at least 10 years of National Insurance contributions. For the full state pension, you’ll need 35 years.
The government offers an online tool to check how much state pension you’re entitled to and when you can start receiving it.
Take Control of Your Retirement
Planning for retirement doesn’t need to be stressful. By regularly reviewing your pension, seeking professional advice, and staying informed, you can ensure that your pension is working towards a secure financial future.
For more tailored advice, consider speaking to a financial adviser who can help you refine your retirement strategy and make the most of your pension investments.
By Lauren Dawson
Freelance Writer for the Financial Industry
Lauren Dawson is a dedicated law student with a passion for financial journalism. Alongside her legal studies, she works as a freelance journalist, specialising in financial topics and contributing to various industry websites. Her unique blend of legal insight and financial expertise provides a fresh perspective on complex financial matters.
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