When you reach retirement age, one of the most important decisions you will make is what to do with your pension. Do you take the lump sum payout, or annuity? How do you manage your investments? These are all important questions to consider, but another decision that's often overlooked is whether or not to review your pension.
Despite being so important, many people never take the time to review their pension plan. Here are five benefits of doing so:
Higher Pension Payout
You may be able to get a higher payout by switching providers. If you've been with the same provider for a long time, there's a good chance that your payout has decreased due to inflation. By switching providers, you could get a much higher payout than if you stay with your current provider.
Access Pension Early
You may be able to get a pension payout sooner than you thought. Many people assume that they have to wait until they reach retirement age to start receiving their pension payouts, but this isn't always the case. You may be able to start receiving payments as early as 55 years old, or even younger in some cases.
Longer Pension Payout
You may be able to get a pension payout for longer than you thought. Just like you can receive payouts sooner than expected, you may also be able to receive them for longer than you thought. In some cases, you can extend your pension payout period up to age 100!
Reduce Pension Fees
Reducing pension charges is something that can be done to save money in the long run. Pension fees can be a real drain on your retirement fund, so it's important to try and reduce these where possible. There are a number of ways you can do this, including shopping around for the best deal and making sure your pension fund is as efficient as possible.
You may be able to reduce your monthly pension payment by switching providers. This is the flip side of the previous benefit - by switching providers, you may be able to reduce your monthly pension payment.
Reviewing your pension can be a great way to ensure that you're making the most of this important asset. By taking advantage of any of the benefits listed above, you could end up with a lot more money in retirement. So don't overlook this important step - review your pension today!
If you're looking for more information on pension reviews, or would like to speak to an advisor, please contact us today. We would be happy to help!