The pandemic has not changed our medium and long terms financial plans. A lot of focus has been put on getting the country out of lockdown and the economy back on track. With spring being in the air perhaps now is the time for a financial spring clean, time to take stock and check your own journey is still on track.
Working lives have changed over the last year for some with working from the bedroom or kitchen table becoming something of the norm, however sometimes and not just being forced into change by pandemics, we change jobs and or even career paths throughout our lives. When this happens, we may have left behind previous company benefits, things that haven’t even featured in our day to day thoughts. Why not as part of the spring clean look to review any historic plans, perhaps tidying things up and bringing to order could make a significant difference to your financial goals.
Depending on previous employment and considering only the retirement benefits. Is it worth getting up to date information? A retirement plan is simply a tax efficient savings vehicle that allows both you and the (ex) employer to invest for your long-term future. The main aim is to provide income/money in later life and the current rules regarding access is that anyone who is aged 55 and over can access their retirement pots.
Keeping things simple, work-based schemes come in two varieties (in the main) money purchase or defined contribution and defined benefit or final salary. So, what is the difference? One gives a pension fund built by contributions and market growth, the other is based on salary and service accrued.
Historic plans that have been left behind need careful consideration, and depending on personal circumstances, could warrant being reviewed. Choosing the right advisor for this is one of the key decisions to make, here at ML we are retirement specialists. We have been accredited with the Pensions Gold Standard, which is awarded by the Personal Finance Association, giving those seeking the specialist advice confidence that they are working with an expert.
To discuss the issues raised here and to find out how we can help you, please get in touch with one of our expert advisors today.