Time to Pay More Attention to Your Pension

That time finally catches up with everyone when you need to start thinking about a concrete pension plan. Then again, it is essential to note that not all employees offer pensions, retirement packages.

You can, however, be sure of a good pension plan when working in a government organization or a large company.

If you are nearing closer to retirement, then this might be a good time to start thinking about your pension. The money is usually paid as a monthly check for the rest of your life.

Mis-Sold Pensions

In the recent past, the number of people filing for pensions mis-selling has significantly increased. Mis-sold pensions have led to the compensation payouts of millions of pounds that have been poorly invested. In most instances, the case of mis-sold pensions occurs because of customers that were either duped or advised by unscrupulous financial advisors.

Still, all may not be lost as most of the potential victims of mis-sold pensions have a chance to reclaim their lost money. The best step to take to prevent yourself from falling in the same boat is to seek advice from a certified and experienced pensions advisor.

Why You Might Need Pensions Claims Advice

As mentioned above, one of the worst things that you can ever do to damage your pensions package is to get poor claims advice. It is essential that you get claims advice only from a qualified and certified claims advisor or someone that you trust and knows more about pension claims.

It is also vital to note that the best pensions advice is one that is made specifically to you. It’s not a one-size-fits-all situation. To get the best pension and retirement income, it is best to get personalised financial advice given your circumstances.

Financial advice also isn’t mandatory, especially if you think you can go about the pensions claims and savings process alone. Though, it is more beneficial to have an experienced advisor guiding and advising you through the whole process. Get claims advice that actively increases your pension income and make a significant difference to your wealth with time.

How to Manage Your SIPP

You can also always venture into Self-Invested Personal Pensions (SIPP). A SIPP gives you access to a wider range of investment options. Running your own investment isn’t easy. But it is not impossible either. Then comes the issue of your SIPP claims.

When making your SIPP investment, it is crucial that you:

• Choose the right investments
• Don’t hold too many investments
• Check your workplace scheme
• Don’t breach your lifetime allowance

You may also need to hire a financial expert to help you manage your investments and guide you on your SIPP claims. A professional advisor will keep you in the loop of the dos and don’ts in your SIPP investments. 

Final Salary Pension Explained

Essentially, final salary pensions do precisely what it says. You get paid a pension based on your final salary at the point of retirement. Before you get all excited, however, it is essential to note that this pension is technically set up by your employer. To mean that you cannot get this one by yourself. So, if your employer does not offer a final salary pension, then you will never get one anywhere else.

Pension Annuities and Claims

Pension annuity claims usually begin close to or at retirement and can last up to the beneficiary’s death. Some cases also allow the beneficiary’s spouses to continue receiving their pensions in case of their death. Annuity claims are usually paid in installments that can be single premium annuities and variable annuities. Moreover, unlike pensions, you purchase annuities independently. Plus, they are not linked to an employer. You can, therefore, purchase investment annuities, which will then grow until your retirement.

Bottom Line

From the above context, it is a smart move to invest in a stable financial future after you retire. Start paying more attention to your pension. Get claims advice from a professional claims advisor on the best route to take and smart investment decisions to make with your money.