It can be easy to forget about your pension, once you have one in place with regular contributions. However, it’s important to keep reviewing your pensions regularly. There are many factors that can impact your retirement fund. In this article we’ll explore some of these factors. We’ll also discuss how pension specialists such as the Willday Wealth Management team can help.

How often should you review your pension?

It can be easy to forget about your pension, once you have one in place with regular contributions. Ideally you should work with a pension specialist such as Willday Wealth Management. We’ll use our expertise to assess the performance of your pension and any external factors that might impact your investment. We’ll then suggest any adjustments required for more effective pension investments.

Why is regular pension reviewing important?

It is essential that you do not forget about your pension pots until you near retirement. By this time you may have missed the opportunity to maximise your investments. Adjustments to your investments may be required due to external factors impact your savings or to adapt to new retirement goals. Reviewing your pension will ensure your money is working as effectively as possible for you, and keeping on track for the retirement you’re planning for.

Change of circumstances

If your personal or financial circumstances have recently changed, your retirement goals may also change. Pension plans may need to be adjusted to reflect this. For example, the birth of grandchildren may change your priorities in retirement. Travel plans may be shelved in order to be close to your grandchildren, for example. Alternatively, a change in job and increased salary may leave you with more disposable income to invest.

Keeping on track

It is difficult to predict exactly how much money you will need for retirement. Depending on your individual goals and circumstances, the required pension pot size will differ. A good indicator, however, is to determine your annual expenses. Depending on what age you intend to retire, you can estimate how many years of retirement you may have. By multiplying this number by your annual expenses, you’ll have a goal for your final pension pot amount.

By regularly reviewing your pension, you will be given peace of mind that your funds are invested wisely to reach this goal. You are able to keep control over the funds that will see you through your retirement years. New products may become available that better suit your financial goals and circumstances. Reviewing your pension with the guidance of Willday Wealth Management, you can take advantage of new pension products if suitable, and maximise returns.

Market changes

Global economics can have huge impacts on stock markets worldwide. This was recently evident following the introduction of import tariffs by President Trump in the US. The impact on stock markets was almost instantaneous and significant. Whilst advice to many who are not close to retirement was to do nothing, those close to retirement may have been advised to take mitigating action. If you do not regularly review your pension and remain aware of global news that may impact it, the consequences could be huge.

If you have concerns about global market changes and how it may impact your pension, contact our team. We’ll advise you on the necessary steps to mitigate negative consequences.

Workplace and state pensions

As well as your private pensions, you should regularly review other pensions you hold too. For example, your workplace pension may slow in growth due to the recent increase in National Insurance contributions for employers. They may reduce their contributions to your workplace pensions to cover the additional National Insurance outlay. If your workplace pension is not growing as fast, your private pension may become more important in helping you achieve your retirement goals.

Additionally, there is no guarantee of a State pension when you reach retirement age. Whilst there is no indication at this time that State pensions will cease, it may no longer rise in line with inflation, for example. The Pension Triple Lock for state pensions is not a guarantee. Any state pension payments should therefore ideally be viewed as top-ups to private pension income when retirement planning.

How to boost your pensions

After reviewing your pension you may be looking to boost your pension pots. This can be achieved by increasing payments, as well as ensuring tax relief is being claimed where possible*. Basic rate taxpayers automatically receive 20% tax relief on their pension pot contributions. Higher rate and additional rate taxpayers, however, can claim 40% and 45% tax relief respectively by completing a self-assessment each tax year.

You may choose to change the risk level of your investments, although it would be wise to discuss this with an expert first*. If you have multiple pensions, consolidating them may also be a way to boost your retirement funds. This is because there may be more choice of investments and it may also be a way to minimise fees paid to pension providers for the administration of your pension plan. Consolidating your pension may not be suitable for everyone, though. Speak to the Willday Wealth Management team to discuss its suitability for your circumstances and financial retirement goals. You can read more about the benefits and drawbacks of consolidating pensions in our blog post from last year.

How can Willday Wealth Management help?

Contact Willday Wealth Management for help reviewing your pensions. Our team are experts in wealth management and specialise in investing for retirement planning. Not only will we help you conduct a review of your existing pensions, we’ll offer advice and guidance on how to maximise the efficiency and effectiveness of your investments.

By having our team manage your pensions, you’ll have peace of mind. We’ll manage your investment portfolio with your retirement goals and financial circumstances in mind, to ensure your money is working hard for you. We’ll also advise you of any adjustments required to mitigate the impact of global stock market changes.

Contact us now to book a consultation.

* With investing, your capital is at risk and you may get less than what you invested. Tax treatment depends on your individual circumstances and may change in the future.