A personal pension plan will give you the edge on retirement, and will give you not one payment but two payments from each of your pensions, which could secure your debts or help you, retain a better lifestyle.
How to get the more return on your pension
You should shop around to find the best plan for you and your investment. Ask questions like:
- What are your management fees?
- How much money would I expect to have in my pension when I retire?
- Why should I choose you?
Reviewing your pension
There are two ways to review your pension plan, you could either get a specialist who will review your pension for free to find out if there are better options available to you, or you can do this yourself by again ringing the company who deals with your pension plan, find out the value and your expected profit from your investment, then ring around and see if there is any other companies who can better use your money for a higher return on your investment, and don’t forget to ask them their management fees.
How can having a personal pension plan secure my debts?
Let’s say up to the point of retirement you have outstanding debts for instance, such as your mortgage or a loan. You could use some of these funds from your pension to help pay the last payments of your mortgage or loan.
To be able to pay off these final payments with your state pension alone, could leave you the inability to pay for other goods needed to sustain your health, for instance food, medicine and much more. You are only entitled to £136.00 per week from your state pension,can you imagine running your house and paying your mortgage off with that sort of money available to you, it sounds near impossible.
Retaining your lifestyle with your personal pension
A personal pension is a must for everyone, there are so many benefits from having a personal pension that people are just unaware about, and in the most common case, they don’t worry about it until it’s too late and they receive their entitlement.
A personal pension will help you retain your current lifestyle, and give you better options later on in life. You will not have to worry about having to sell your house or making cuts that will affect your lifestyle.
It will give you a greater annuity per month and will help you ensure your financial future.
Secure your family’s financial future
If you have family and for some reason don’t manage to reach the retirement age, your pension funds could be used by your family to secure their financial problems and to ensure you get the best send-off they can possibly ask for.
This is also a great way to make sure that your family will not struggle after you’ve gone, making their life more comfortable for the future.
There are many benefits from having a personal pension, this is just a few of them to get you thinking about your future.
Author Bio: This article was written by Anthony Lea a Financial consultant for Hemscott Associates