Here’s why regular pension reviews, ideally with a Financial Broker, are essential:

1. Adjusting Your Contribution Amount

• Early Career Contributions: When you start your pension, especially early in your career, your contributions are often modest. As your career progresses and your salary increases, it’s crucial to adjust your pension contributions accordingly. Failing to do so could mean you’re not saving enough to achieve the retirement lifestyle you envision.
• Income Growth: Regularly reviewing and increasing your contributions in line with your income ensures you are maximising the benefits of compound growth and staying on track for a comfortable retirement.

2. Ensuring the Right Product Fit

• Career Changes: Your career path can significantly impact your pension needs. For example, moving from employment to self-employment or becoming a company director may necessitate different pension structures or products.
• Pension Structure: A Financial Broker will help assess if your current pension plan still aligns with your changing career and financial circumstances, ensuring that you are in the most suitable pension arrangement, especially with Auto Enrolment due to commence in 2025. You may feel AE may not provide sufficient retirement provision for you and talking to a Financial Broker may provide an alternative option or allow you to have a constructive conversation with your employer.

3. Evaluating Risk Profile

• Changing Risk Tolerance: As you approach retirement, your risk tolerance typically decreases. You wouldn’t want to experience a significant drop in your pension fund’s value close to retirement, especially when there’s little time to recover.
• Regular Adjustments: A regular review allows you to adjust the risk profile of your pension investments, aligning them with your current risk appetite and ensuring they are suitable for your stage in life.

4. Navigating Evolving Tax Rules

• Tax Relief and Limits: Tax rules related to pensions, such as relief limits, contribution rates, and tax-free lump sums, are subject to change. Staying updated with these rules ensures you are making the most of available tax benefits.
• Impact of Changes: Regular reviews will help identify any changes in tax regulations that could affect your pension strategy, allowing you to adapt accordingly and optimise your tax position.

Why 2025 is the Perfect Time for a Pension Review

With the start of a new year, it’s an opportune moment to assess your pension strategy.

Here’s why scheduling a review with a Financial Broker in 2025 is so important:

• Strategic Adjustments: As we enter a new year, it’s a great time to make any necessary adjustments to your pension plan based on your current financial situation and retirement goals.
• Yearly Check-Up: A yearly view ensures that your pension is on track and making the most of any new opportunities or changes in regulations.
• Futureproofing: By addressing these aspects now, you can ensure that your pension plan remains robust and well-positioned for the future, giving you peace of mind as you work towards a secure retirement.

Don’t wait for a crisis or a significant life event to trigger a pension review. Taking proactive steps in 2025 can help you stay on track and make the most of your retirement savings.