Why would I bother switching?
Your pension could have a big part to play in how you live your life in the future. And if it is not currently working how you need it to, then simply sticking with what you have got could create issues further down the line.
There’s plenty of time left, can’t I leave checking my pension for another day?
Making small changes to your pension now could make a huge difference to your future. For example, let’s consider pension provider charges. Typically, these can range from 0.5% to 1.5% per year. At Portafina, we negotiate for our clients annual provider charges as low as 0.2%. While these different rates may seem marginal on paper, they can have a significant impact on the size of your pension pot further down the line. Provider charges are just one of the fees generally associated with pensions. It’s important to understand all the charges you are paying. This is where a regulated financial adviser, such as Portafina, can help.
So, basically it’s all about how much I am being charged?
The fees you are being charged is just one aspect. Pensions are complicated products with many different elements and it’s all about getting the right balance for you. For example, your pension could currently be shrinking, rather than growing, because of the way it is invested. Or, you might not be able to leave any remaining funds to a loved one when you die – which is far from ideal if this is what you want to do.
Can I switch any kind of pension?
You can switch all private pensions and most employee pensions. You do need to be careful if you are thinking about switching a final salary company pension. These types of schemes generally come with guaranteed benefits when you retire, which you would lose if you were to switch. You cannot switch out of unfunded public sector schemes which cover organisations and professions including the NHS, teachers, armed forces and the police.
Free pension information guide
Simply fill in our form and we will post out a pension information guide to you today!
There seems to be a lot to consider, I think I’ll stick with what I’ve got
Being completely frank, sticking with what you have got could seriously undermine your plans for the future. Alternatively, it could be absolutely the right decision for you. The issue is not knowing and when it comes to something as important as your pension, is this a gamble you are willing to take?
Your questions answered
What to look out for?
If you are doing some research around pension switch then you are probably looking at more than just one company. So, we have listed below some important questions to bear in mind.
Is the company regulated?
When seeking the help of a financial adviser or looking into a pension provider, it is important to make sure they are regulated by the FCA. This will make sure that your savings are safe and you receive the right advice from trained professionals. You can check if a company is regulated by using the FCA register. Our FCA number is 754580.
What will it cost you?
Do you know if you will be giving up any benefits?
If you switch your pension, how will your savings be invested?
How will your pension be managed over time?
4 ways a pension transfer could benefit you
Increased growth and reduced fees are just two benefits you could be missing out on by staying put with your current pension. However, transferring from a fund that is performing well could be the wrong decision. Find out the benefits of pension transfer and the reasons why it is important to always take advice first.