What is a Pension Review?

imagesA pension review is a performance check of your current retirement pot. A review can bring many things to the table you would have not known about beforehand such as;

  • Your account maybe paying high management charges which hinder the growth of your investments.
  • Discover Pension pots you had no idea existed.
  • Compare how your plan is performing to others.
  • Know your current pension value and what it is expected to be when you hit the retirement age.

After the review has taken place you will be given a choice of better providers who will give you a better investment on your pension plan. They will give you;

  • An option of higher performing investments.
  • Your expected pension pot at when you hit retirement in a better pension plan.
  • Your charges compared to your management fees against your current pension plan.
  • Expected growth of your pension plan per year.
  • What your annuity rate is expected to be after retirement.

All this information should be given to you for free.

What is a pension plan?

A pension plan is an investment that is deducted from your wages, and in return used to buy shares and stocks to increase the value of your monies.

Buying into the right plan earlier will increase your investment profits giving you a much higher value pension pay out. Every pension plan pays a management fee, all these fees are not the same and some are cheaper than others.

It is important that you know what you are currently paying in management fees and what your investments are returning.

Not knowing this information could result in;

  • Under performing pension.
  • Management fees taking the majority of your return in investments.
  • Lack of funds securing your retirement.

Compare pension plans

Comparing pension plans isn’t always easy, and you still might not find the best one for you. You must start by looking at which investment opportunities look the most secure and have a high return on investments, with low cost management fees all at the same time.

If you do not know where or how to start looking, then you should have your pension looked into by a professional 3rd party who will compare your plan against a number of others to identify a better performing plan.

The Benefits of been in a better pension plan;

  • Better pay out in retirement.
  • Secured lifestyle in retirement.

What does my pension funds get invested into?

Your Pension will get invested into whatever stocks and shares your current pension provider has made investments in, they usually buy stocks or shares of companies and the stock or share of the business goes up so will your investments, giving you a higher earning.

Why do I need to keep reviewing my pension plan?

You should treat your pension like any investment you would make currently, you should monitor it and keep track of how it’s performing, and not knowing the performance of your pension could be fatal if you don’t know how much you are entitled to. If your pension isn’t or hasn’t been performing how would you know if you didn’t review it?

  • Many people in the UK alone overlook their pension, and have had no choice but to extend the amount of time it takes them to retire because of it.
  • People have had to sell their homes, or continue to work to keep their lifestyle.
  • If you are forced to enter retirement early due to illness, would your pension be enough?

There are many questions you should ask yourself about your pension and make sure that there is enough to sustain whatever life style you currently have, and prepare for the worse.

Who are we?

Hemscott associates are a specialist review company who take pride in getting the most of your pensions. Hemscotts offer pension reviews that can be used to maximise the potential locked in your pension or pensions by tracing and reviewing all your existing investments.

Jimmy Simond is a founder of Personalfinancetricks.com, he share his immense knowledge of finance in this blog.