Thanks to autoenrolement, almost every employee in the UK earning a full time wage should have a company pension. But what should you know about it;
It is very rare for it not to be in your interests to be a member of your company pension. If you are not in it, ask to join it.
You will generally be invested in the ‘default’ investment fund*, most often a medium level of risk fund. You might want to take a lower or a higher level of risk, and that’s easy to do.
Your default fund might also be a ‘lifestyle’ fund, meaning that as you get closer to the stated retirement date, percentages of your fund value moves into lower risk funds, and then into cash. This may not be what you want, but is easy to change.
You will have a set retirement date, normally 65, but you might be planning to retire earlier or later than this. Ask your scheme to change this, as it will affect any projections for what pension you might get when you do retire.
Your company might match your contributions if you agree to put more into your pension plan, as they can sometimes save on National Insurance Contributions. It’s worth asking!
If you die, do you know who the money you have in your pension will be given to? It might not be the person(s) you want to give it to? Ask! And then change it if necessary!
Your HR department should be able to give you more information about your scheme, but won’t be able to give you any financial advice.
If you need any independent financial advice with any of the above, or any financial advice in general, please give us a call on 01772 864314. We are based in #Preston, #Lancashire, and can help with all types of pension enquiries.
* If you are a member of a defined benefit/final salary pension scheme, your situation may be different.
Comments