Why it’s important to review your pension
It’s very easy to forget about your pension after it’s set up, safe in the knowledge that your pension pot is growing every month and year. However, this approach means you could miss out on opportunities to maximise your income later in life.
It’s a good idea to keep a close eye on your pension, reviewing it perhaps every 6 to 12 months. This way you can take the necessary steps to ensure you are getting the most out of it, for a happy and fulfilling retirement, free of financial worries. Let’s take a look at five reasons it’s important to review your pension regularly…
1. Make sure you’re on course for the retirement you want
When your retirement comes around, you want to be able to enjoy financial freedom, allowing you to live the life you want and spend timing doing hobbies, activities, and pursuits that bring you joy.
With this in mind, it’s important to know that you’re on track to achieve this outcome, and the best way to do so is by reviewing your pension, so you can make the necessary changes where you need to.
2. Pension rules will change over time
As the years roll by, different governments will change the pension rules and regulations. For example, the limit on the total amount you can save in your pension each year tax-free was increased, just last year, from £40,000 to £60,000.
Undoubtedly, this kind of change can make a huge difference to how much you feel you can realistically afford to put away into your pension.
Therefore, staying up to date with the latest rules is key, so you can respond accordingly and make financial decisions that reflect the current situation.
3. Changing circumstances at home and work
It’s likely that your personal and professional circumstances will change as time passes.
Perhaps you’ll get married and have children, which changes your priorities. Or, maybe you’ll get promoted at work and see an increase in your salary, allowing you to contribute more to your pension.
4. Feel confident about your future
As we said before, when it’s time to retire, you’ll want to live your life free of financial worries. One way to help make sure this happens is by keeping on top of your retirement plans.
By reviewing your pension regularly and making sure you’re on track to achieve the type of retirement you want, you’ll gain invaluable confidence and peace of mind.
Which is something that money simply can’t buy!
5. Make the most of employer contributions
Many employers will commit to matching the amount of money you put into your workplace pension. If that’s the case for you, it’s worth reviewing whether you can afford to contribute more, to get the most out of it, as the more you contribute, the more your employer does too.
We’re here to help you plan for retirement
Our specialist financial planners are here to help you plan for your retirement and maximise your pension income. If you have any questions on setting your finances up for future success, please get in touch with our friendly team, and we’ll be happy to speak with you.
