Frequently Asked Questions
Most people are aware that managing pensions and having a reasonable personal pension is important for financial independence when they reach the retirement age. In order to maintain a reasonable lifestyle after retirement, it is essential to invest quality time into ensuring that you have invested them in schemes that are dependable and review them regularly. However, the daily pressures of work distract most of us from taking the right steps at the right time and end up in undesirable situations. The most tragic thing that can happen after working hard for your entire life is not having enough money for retirement.
Pension review allows you to analyze where are in your pension investment cycle and whether your current investment strategies will allow you to seek the pensions you are hoping for.
Our partners will investigate exactly how your pension is performing. This means looking at all of the places your money is invested and finding out whether these funds are offering you a good return on your money. Our partners can let you know how much income your pension will generate during your retirement as it currently stands.
How Does It Work?
On the basis of information submitted by you in this short form, a qualified financial advisor in pensions will call you to analyse your investments. They will take you through step by step process of analysis, review, and advice. External analysis of the pension market and returns from other pension providers will be benchmarked to determine any gaps. The financial advisor will then share all the pension options with and work with you to arrive at a plan which will help you realise your pension aspirations.
How Much Do I Pay?
There are two models of payments. The financial advisors either charge you for their advice or seek their fees from the pension funds or providers they would refer you to. In either case, the entire process is transparent and is regulated by the Financial Conduct Authority. When the financial advisors present their analysis and discuss your options, they will make it clear to whether you have to pay or whether their partners to whom your pensions will be transferred to will pay. They also will declare the amount of commissions they will be paid. The whole process is transparent and the advisors will only act on your approvals.
If you are not happy with any of the payment terms, you have no obligation to proceed. The pension review process is completely free of charge and there is no obligation for you to proceed if you are not happy.
How long does it take to review my pension?
A typical review can take up to 3-4 weeks. However, depending on the complexity of your pensions, it can take longer. It also depends on how quickly you return your LOA “Letter of Authority” back to the financial advisor and the time taken by your existing pension provider to get back to the financial advisor. Throughout the process, you will be fully kept aware on the progress being made on your review.
What is an LOA?
LOA is the “Letter of Authority” you provide to your financial advisor to discuss your current pension plan with your current providers on your behalf. You authorise your existing pension provider to release your pension related information to the financial advisor.
What are Frozen Pensions?
Frozen pensions is a misnomer. None of your pensions can actually be frozen. It is a commonly used phrase to illustrate any funds left with your previous employer and not transferred to your new employer or your own personal pension scheme. In other words, it’s your funds locked up in various schemes and you have not chosen to do anything with it. Sometimes, people leaving a company also leave their old company occupational scheme benefits and start a new one with their next employer. As the previous employer cannot do anything with such funds, it is termed as frozen pensions.
What controls do I have in the Pension Review Process?
Right from submitting your details online now, seeking an advisor to call you, signing the LOA to making decisions on review process and transfers; you retain full control of the process. The advisors will present you with various options and also offer their advice to you. But the final choice of which scheme you want to take and how much you want to invest is entirely yours.
Are the Financial Advisors FCA regulated and how can I check it?
The financial advisors are strictly regulated by the “Financial Conduct Authority” or FCA as it is more commonly referred to. You can go on the FCA register and search for the advisor to verify whether the advisor is authorised to deal with you and also whether they are authorised to offer advice. You can also find out whether they have any adverse remarks in terms their regulatory conduct in.
You will in most circumstances get a full review from an Independent Financial Adviser. They will look at all of the products on the market and establish if there is anything out there which is likely to benefit you more than your existing package. They will also make their recommendations about how a pension transfer might work in your favor. However, in certain circumstances, a review will be completed by a non-regulated company due to the value of your pensions.
The Benefits Of a Pension Review
Ask your self a few of the following questions………
- Do you know what fund your pension is invested in?
- Do you know what the fees and charges are?
- What’s the performance like?
- Does it suit your attitude to risk?
- Is it on target to provide the income you need in retirement?
- Consolidate multiple pensions
- Understand the new pension changes and their potential impact
- Assess your eligibility for tax-free income
If you don’t know the answer to any of these questions, then our pension review service could be just what you need. We will look at all your pension plans and any other investments you might want to use in retirement.
Many of the older type pension plans have high charges and not in the best performing funds. You owe it to yourself to make the most of your money. Even small percentage differences in yearly performance can have a dramatic effect on the short, medium and long-term growth of pension policy investments. Many traditional pensions have achieved poor results over the last five years due to stock market volatility, annual charges and inflation.
We don’t charge for our review service, we only charge if we set you up with a new plan and you will know exactly how much that will be before you commit to using our service.
It is vital to review your pension on an annual basis (as you would your car and insurance policies and ISA investments), to enable you to make informed decisions about building a substantial pension pot to deliver your retirement goals.