One of the things that people often spend their lives trying to gain control over is their finances. However, as with everything in life, it has its high and low points, so you’ve got to learn how to ride the waves. One way to do this is to be well informed about how these changes can affect important investments such as your pension pot.
To equip you with the right knowledge, leading pensions advice company Portafina have put together a few tips on common life events, and how they may affect your pension.
For some people, what keeps them going during their working years is envisioning spending the rest of their lives in a warm country doing all of the things they weren’t able to do during their working years. If you’re one of these people, you should know your desires are valid! However, it could affect what you’ve been working at saving.
To protect your pension and not end up with any unpleasant surprises, be sure that you have access to your pension from wherever you are. Also, get information about whether you’d qualify for tax relief as that’s critical as well.
Getting a New Job
It can be an exciting time when you get a new job, especially when you feel like it’s one taking you in the right direction. You should know that your pension is safe if you do change employers, so there’s nothing to worry about in that regard. If you’re over 22 and will be earning more than £10,000, your new employer is required to enroll you in a new workplace pension scheme. As of April 2019, the minimum total contribution is said to be 8%, and it has to be paid by both you and your employer. If you want to learn more about developments regarding pensions, then you should follow Portafina’s Facebook page.
Getting a Divorce
Deciding to get divorced can be both emotionally draining and expensive. It can seem even more costly when your pension is at stake. For this reason, you should know that there is a great deal of flexibility when it comes to how your savings are shared out as part of a settlement. You could decide to go down the route of pension offsetting. This specific option is where the value of the pension is offset against other assets.
Being Made Redundant
Like getting a new job, being made redundant shouldn’t affect your pension savings. As mentioned earlier, it just means that you’ll no longer receive contributions from your former employer. Depending on what benefits you most financially, you could decide to continue contributing to that scheme on your own or transfer it to a new or existing one.
Illness is a life event that is usually beyond your control, and that can happen at any time. If it does, you may want access to your pension savings. Most pension providers don’t permit you to gain access until you’re at least 55.
However, in the case that you’re very ill, you can typically access to some, if not all, of your money. Speak to your provider to find out what their policy is and how it affects you in the case of medical emergencies. While you’re at it, you should also find out whether your money can be transferred to family, friends or a charity of your choice in the event that you die.
Pensions don’t have to be a tricky aspect to navigate, and you don’t have to do it alone. You can visit Portafina Discovery a handy resource hub to find out more. They also have lots of information on their social channels, YouTube and @Portafina UK on LinkedIn.