09 Aug 2016

Why now is the time to review your pension

Why now is the time to review your pension

Millions of savers currently spend very little time reviewing their pensions, with more than a quarter of savers (28%) admitting to never reviewing their retirement savings.

Millions of savers currently spend very little time reviewing their pensions, with more than a quarter of savers (28%) admitting to never reviewing their retirement savings.

And a fifth (19%) of those with a pension said they review it less than once every five years, according to figures released by Aviva.

Worryingly, the figures show that only just over a quarter of people (27%) think that their current contributions into their company pension scheme will provide enough for them in retirement.

Ask most people what they earn now and they’ll have a pretty good idea, sometimes down to the penny, but most people have no idea what their pension is worth.

The figures show that urgent action is needed to encourage people to take an active interest in their retirement savings.

While the number of people reviewing their pension is worryingly low, the research shows that the main thing that does cause them to act is the arrival of their annual pension statement.

Regularly check how your pension is performing

Investment funds rarely continue to perform well year after year, so it’s important to regularly check how your pension is performing.

In addition, over time the amount of risk many of us are prepared to accept in our investments typically tends to reduce, to the extent that by the time we’re close to retirement we may not wish to take much risk at all.

The closer you get to approaching retirement, the more important it is to know how your pension fund is performing.

If you wait until your retirement, the chances are you will have no idea what income you will receive, and then it’s too late to make any changes. The longer you have to prepare for retirement, the much greater chance you have of doing something about it and achieving a comfortable retirement.

Contributions should keep pace with our income

As part of a year-long study into people’s financial habits, consumers were asked which events had caused them to review their pension. The most popular answer was receiving an annual statement from their provider (35%), followed by a pay increase (28%) and starting a new job (17%).

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

Independent financial advice

To make the right investment choices, you need to ask the right questions. And when it comes to answering those questions, Aberdein Consdine can help you find the best way forward.

If you would like to get a sound point of view about what may be right for your unique situation, please contact us. We’ll review and discuss your financial situation, help you set goals, suggest specific next steps, discuss potential solutions and provide ways to help you stay on track.

To speak to one of our advisers, call 0333 0044 333 or click here.

Note: Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change. The value of investments and income from them may go down. You may not get back the original amount invested. Past performance is not a reliable indicator of future performance

Please correct the errors below before submitting your request:

Get in touch

Our dedicated client contact team prefer to receive enquiries through our contact form. We'll endeavour to get back to you within 24 hours or during the course of the next working day.

Tick this box if you wish to receive news and offers from Aberdein Considine. By doing, you indicate your consent to receiving targeted email marketing messages from us. On each occasion that we contact you in the future, you will be given the option to opt-out from receiving such messages. You may also email marketing@acandco.com at any time to opt-out.

The personal information that you provide to us in this form will only ever be used by Aberdein Considine (as the Data Controller) for the following specifically defined purposes:

  • email you content that you have requested from us
  • with your consent, occasionally email you with targeted information regarding our service offerings
  • continually honour any opt-out request you submit in the future
  • comply with any of our legal and/or regulatory obligations