Could pension transfer advice make you money
There are three aspects of a pension plan that affect the amount of money in your pension fund:
- The money you put in
- The money the pension company takes out in charges
- How well the pension fund managers look after your money
You can actually change all or any of the above to improve your pension planning position.
The money you put in
If affordable, putting higher contributions into your personal pension plan will obviously increase its value. If this is not possible, check whether your employer will make any payments in. Some will, which could quickly mount up.
Pension charges and pension fund management
How the pension company takes its charges is set out at outset and is not easily changed. You cannot really negotiate on the level of charges taken.
You could possibly improve the performance of your pension by switching funds if yours is not doing so well. This should not incur any charges but its just aswell to check before you do it.
Pension transfer advice - A way to make money?
One way of reducing the pension charges and improving how your invested pension money grows is by transferring your pension to a new pension company. Now there will be pension transfer charges to calculate to see if its worthwhile but for many people this is an excellent option. You can combine lots of smaller pension plans into just one policy to save on administration charges and paperwork for you.
Transferring a pension can be complicated depending on your own personal circumstances and the types of pension plans you currently hold. That’s why it’s best to seek pension transfer advice from a specialist Independent Financial Adviser (IFA) who is familiar with these types of arrangements.
The IFA will be able to undertake a feasibility analysis to see if it is worth transferring. They need to know what your attitude to investment risk is to enable them to select the most appropriate pension investment funds. Some pension plans now have access to hundreds of different funds so you can be guided to one with a strong investment track record. Or you might want to consider a SIPP which can invest in commercial property amongst other things.
So by taking pension transfer advice you could tidy up your pension plans, reduce the pension plan charges and move to a better performing pension fund.
