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5 Retirement Plan

Problems To Address

As experienced independent financial advisers we regularly carry out impartial reviews of clients

pension arrangements. Time and again we come across the same issues, each of which can have a

significant impact on our clients available retirement fund. They are:

No consideration of

final pension income.The Impact of fees.

Poor choice of default

investment option.

Failure to consolidate

funds.

Lack of

communication.

The earlier these pension plan problems are addressed the greater the potential returns.

So it’s time to dust off those old files, find a quiet corner and work through our guide to

the 5 most common problems and potential solutions.

No consideration of

final pension income.The Impact of fees.

Poor choice of default

investment option.

Failure to consolidate

funds.

Lack of

communication.

Consideration of Final

Pension Income

The first step is to find all your pension statements (or request copies if lost) then carry out an initial

calculation of what your final retirement income may be using a pension calculator or by employing

an Independent Financial Adviser to do perform the calculation on your behalf.

Is your available retirement

fund likely to fund the

lifestyle you have planned in

retirement?

Do you know what your

retirement income will be?

Have you lost trace of some

of your pension funds?

Take action

Based on Your

Findings

If your available retirement fund falls short of your expectations it is important to take action.

Most people have a set income, and regular unavoidable outgoings, which often means funds

available to invest in a pension are limited. Some hard decisions may be required and the

closer to retirement date you are when identifying a shortfall the harder those decisions can

become.

Identify what you can reasonable invest in your pension fund on a regular basis.

The Impact

Of Fees

You may be surprised at just how much is taken out of your retirement pot for fees on a regular

basis

Large administration fees unfortunately used to be the norm with many pensions. An Office of

Fair Trading report found that older pensions schemes were charging savers up to 2.3% of the

pension fund per year. That may not seem a lot but grab a calculator and work it out.

Poor Choice of

Default Investment

Option

Many company and personal pensions come with a default investment option. This means that

everyone who chooses that type of pension from the provider will have their savings invested in

a preselected set of companies, shares, bonds and other assets.

Some of these default choices perform well, but others deliver poor results. Just a few less

percentage points per year can alter retirement income drastically and many don’t realise they

often have the option to alter their investment choice for the better.

Lack of

Communication.

Do you know what happened to your old workplace pension scheme and (be honest) can you

lay your hands on the paperwork right now?

During reviews, we frequently find people have not communicated with one or more of

their providers for some time. This could simply be due to lost details, changing address or

simply ‘losing touch’ with your savings.

Making sure you’re on top of things is really important, as it can help to mitigate things like

increased fees. Don’t delay! Dig out those old pension details today and get back in touch

with your provider.

Consolidate

Funds

We often find clients have moved jobs several times during their careers leaving behind

pension funds they consider frozen. The best course of action will depend on what kinds of

pension you have, with which providers and how long you have until you retire.

Depending on individual pension performance and fees consolidating several pensions can

make a significant difference to your final fund. It can also make management of your pension

fund significantly easier with only a single provider to consider.

Conclusion

There are many pension problems that can occur and the above only covers some of the most

common issues. Armed with policy documentation and the time to work through the issues most

problems can be addressed but mistakes can be costly. You may wish to address the issues

yourself but a better alternative can be to employ the services of an Independent Financial

Adviser offering a free pension review

For a no obligation discussion of your retirement plan issues call 0800 042 8341 or Email

enquiries@thepensionreviewservice.com or for pension tips and advice visit our blog

Helping People Secure their Financial Future

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