When it comes to financial planning, one of the most important things you need to consider is your pension.
Retirement security is imperative, as you need to make sure you have enough money saved for the days when you no longer have an income.
In this post, we are going to look at pension transfers specifically, which is the process that involves moving your money and assets from one pension scheme to another.
There are many different reasons why you may want to consider transferring your pension, including:
- You can save money – A lot of people transfer their pensions because the charges in one plan are lower than the plan they are currently on, and consequently they are able to save more money by switching.
- Save time – At present, if you have several different pension schemes you may want to consider transferring them to one provider. By doing this, you can save yourself a considerable degree of time and hassle whenever you want to make a change.
- Take advantage of great features – Another benefit associated with pension transfers is the fact that a lot of the modern pension schemes offer a number of excellent features for you to take advantage of, including online access, which can give you the ability to manage your investments with ease in real time.
- Have more investment choice – You may find that another pension scheme offers you a greater level of investment choices when compared with the scheme you are on at present.
Now, you have a better understanding of the main reasons why people consider transferring their pension.
A lot of people will do this with their estate planning attorney, ensuring everything is tied up nicely.
Nevertheless, there is a lot that needs to be considered when switching from your current pension to a different scheme.
Here are the main points you need to bear in mind when doing so:
- Is it possible to change your current plan? The first thing you need to do is make sure you can transfer your pension, otherwise you’re going to be wasting your time.
- Charges you will encounter – One of the main reasons for switching pension scheme is to save money – make sure that this is going to be the case.
- Features of your existing plan compared with your new plan – Is your new plan going to offer features that your current one doesn’t?
- Your attitude to investment risk – Are you willing to take risks in regards to pension investments? Do you want a policy that provides an abundance of investment choices?
- Your retirement objectives – This is the most pivotal factor of them all. You need to outline your objectives to determine whether the new pension will help you to achieve them.
As you can see, there is a lot that needs to be considered when transferring your pension.
As this is a pivotal part of wealth management, it is highly advisable that you use the services of a financial advisor to help you, as they will be able to talk you through the process and help you to select the right pension scheme for your requirements.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)