When you’re hit by sudden changes in your life, it’s easy to overlook the long term consequences.
If you’re preoccupied dealing with the immediate repercussions, considering the future can often be the furthest thing from your mind.
You might not even think how a change in your lifestyle might affect your pension, which could have some serious repercussions when it comes to retiring.
Portafina has released a series of advice guides that reveal how those sudden and dramatic life changes might affect your pension, and what you should do in order to reduce any potential negative impact. Below are four questions you should ask yourself.
What if I get a new job?
If you’re over 22 and earning over £10k a year, then your employer should automatically enrol you into a workplace pension. You and your employer will then make contributions that all go towards your savings total. If you have any other pension plans, including from a previous employer, you may be able to transfer those savings into your new pension plan, so it’s always worth checking. You can always check Portafina’s Facebook page for information on such issues.
What if I relocate?
Millions of Brits have made the decision to take their pensions and retire to another country. What many forget to do is check that they will have access to their pensions if they are living abroad. This could cause serious issues if you fail to check. You may also find that you lose any tax relief that you are entitled to, so make sure that you know what happens with your pension if you do decide to relocate.
What happens if I’m made redundant?
Being made redundant is always a shock, especially so if you have been working in the same place for a long time and paying into a workplace pension. Many fall into the trap of assuming that their payments and savings are lost when they are no longer employed by the workplace that set up their pension, but this is not the case. Those savings may be transferable and sent to either a personal pension or your next workplace pension.
What happens to my pension if I file for bankruptcy?
It’s good to know that if you declare bankruptcy, then your pension savings are not considered as an asset that can be seized. This can help alleviate worries about the future, but it does come with a lot of rules and regulations. These will determine how much you can continue paying into your pension, and when you can access it. Always check where you stand when it comes to your pension and you’ll reduce the potential for nasty surprises when it comes to retirement.
What if I become ill and unable to work?
When illness strikes, your life can go through a lot of changes. While some pension plans will allow you to start making use of your pension savings before you hit retirement age, many will not. That makes it essential that you know what your policy dictates. It’s important that you recognise the fact that a state pension will never be paid until you hit the age of retirement, no matter how ill you might be.
If you’re not sure where you are withyour current pension arrangements, Portafina hasa variety of video guides on YouTube. You can also follow them on LinkedIn and Twitter if you’d like to keep updated on pension info that could make your twilight years much easierto cope with.
