what could happen if you neglect your pension?

We get it, pension saving doesn’t seem particularly exciting. You may even feel as though it’s hindering your current financial position having to tie up your money. But the truth is, it serves a purpose. Pensions are an extremely powerful financial tool and paying attention to yours now can seriously shape your financial future.

If you’re guilty of neglecting your pension, here’s 4 reasons why you need to turn things around…

Poorly performing pension

According to a report produced by Royal London, not taking financial advice on your pension and investments could leave you worse off by £50,000. You see, having an adviser encourages you to check in with your pension and review its performance regularly so that you can proactively make financial decisions to boost your savings. So, although you may think ‘I want to enjoy today’ or ‘I’m too young to think about my pension’, you have to weigh up whether this immediate gratification overrides the potential to put yourself in a better financial position in the future.

Overcharged pension fees

Do you know how much you’re paying in annual pension charges? Not many savers do! In fact, 84% of people are unaware of these charges all together. It makes you think whether pension charges could be eating away at your profits. The good thing is, as impartial advisers, we can help you get to know your pension figures so that you can take the necessary action if you’re being overcharged.

Forgotten pension pots

It’s no surprise that for those people who have moved jobs a couple of times, there are pension pots that have been left behind. Perhaps you weren’t aware that an ex-employer was making pension contributions, or you didn’t think it was worth looking into an old pension from a job that you only had for a short period of time, but you would be surprised by how things can all add up. One of the benefits of keeping an eye on your pension is having the reassurance that all your money is accounted for. If you would like to explore an old or lost pension, this is something we can help with.

Out of date beneficiary

If anything happens to you, similar to a Will, the beneficiary you choose will receive the benefits of your pension. As you can imagine, life moves on, circumstances change, and people forget to change their beneficiary accordingly. For example, you name a friend, relative or spouse as your pension beneficiary and you fall out with that friend or relative, or perhaps get a divorce. You wouldn’t want your life savings in the wrong hands. It might be worth checking who your current pension beneficiary is and whether or not you are still happy with this decision.

Though you may feel a little panicked having read this and come to realise you don’t know as much as you should about your pension, it’s not too late to turn things around. If you can take control now, you’ll have a better chance of boosting your savings and increasing your wealth.

And don’t forget you’re not in this alone! We’re experts at leading people on their pension journey. To book a discovery call with our independent financial adviser, Geraint Davies, call 01633 987070.