Should I Speak to a Financial Advisor About My Pension?

Should I Speak to a Financial Advisor About My Pension?

January 6, 2019 Off By Surid1939

Do you want a bigger pension? If so, then how will you manage it once you get it? Will you keep the future in mind? Or, will you focus only on the short-term and possibly mismanage your pension? And assuming that you go with long-term goals, how do you set them? Alone, you can’t. Nor can you answer the rest of the questions without financial advice. So, if you plan to retire soon, it’s about time you asked yourself: Should I speak to a financial advisor about my pension, making sure that I avoid mis sold pension dangers and get proper insight? Here’s why you should.

Get a Bigger Pension

Let’s assume your total pension amounts to £100,000. How easy would it be to increase your annual payment by about £3,650? Believe it or not, it’s as easy as saving an extra £98 every month. At the rate of 5 percent annual interest, this additional amount adds nearly £63,600 to your retirement nest egg.

No wonder nearly one in two would-be pensioners use this simple trick. The question then begs: How did they know about it? According to, they had financial advice. Vanguard UK goes a step further and values this advice. Apparently, just consulting an advisor raises your net pension by about 3 percent.

Receive Quality Advice

Are you sure you’re saving enough for retirement? If you’re not, then you’re not alone, especially if you’re a millennial. After Prudential surveyed this demographic, it discovered that 25 percent of them didn’t understand pension requirements. Another 40 percent were lost on how much to save every month. As if that’s not enough, 50 percent wished someone would explain the whole concept of pensions to them.

Likewise, a survey by the PLSA (Pensions and Lifetime Savings Association) was equally, if not more revealing. It found that one in four workers remains clueless on how much to put away for retirement. Obviously, a knowledge gap exists when it comes to pensions. However, there’s a way to bridge it – financial advisors. Not only do they know everything there is to know about pension regulations, requirements, and packages, but they also pass on this information to you if you contact them.

Make Informed Decisions

After receiving quality advice, you make informed decisions about your financial future. More importantly, you keep up with any changes in the pensions landscape. For instance, are you aware of the government’s intention to raise the state pension age? From 2019, women will receive their pension from the age of 65, not the current 60. In doing so, the government hopes to achieve two things. One, it wants to put women on an equal footing with men, raising them from the stereotype of being the “lesser sex.” And two, it is responding to the rising life expectancy of its citizens. Imagine what would happen if you lacked this knowledge. Come 2019, you’d be waiting to retire, only to be told that you have five more years to work.

Should you seek financial advice, regarding your pension? Of course, you should because without it, you’ll receive less pension. Even worse, you’ll make decisions that may not be in your best interest. And finally, changes to the Pensions Act will catch you off guard.