Over a third of people have never checked their pension – have you?
More than 1 in 3 people (38%) who have a private pension have never reviewed their plan, according to new research from Duncan Lawrie Private Bank.
Women seem to be less conscientious than men in keeping track of their pension, with 43% admitting to never having checked, compared to a third of men (33%).
Of even more concern is that 49% of respondents aged 55+ claim to have never checked how much their pension is worth.
The research also discovered that nearly one in ten (9%) of people in the UK are not sure of how many pensions they currently have.
The importance of keeping track of where your pension is, who is managing it and how much it is worth (both in terms of the current ‘pot’ and the income that the pot could buy you on retirement) cannot be overstated. It will define the kind of lifestyle you have as a pensioner.
Look out for fund manager charges and annual management fees
There is a lot of talk in the press at the moment about the charges and fees on pensions that can reduce the size of your pension pot by up to 50%. Switching to an alternative provider whose fees are more competitive might save you tens of thousands of pounds in the long run.
3 Step Plan to Pension Peace of Mind
Here is our 3 step plan for making sure that your pension is helping you achieve your retirement goals:
- Check how many pensions you have and where they are held. Track down the paperwork.
- Check how much your pensions are worth, both in terms of the pension ‘pot’ and the income that this is likely to generate for you in retirement.
- Check the annual management and fund manager charges and do something about them if they are too high.
If all of this sounds too much like hard work – or you just don’t know where to start – then call Marchwood IFA now and ask us to review your pension arrangements. We can track down your pensions, find out their value and review the charges and fees you are paying. Then we can help you make the right decisions to help you achieve your retirement goals.