Life, as many people say, is a rollercoaster ride, and you can’t predict what will happen next. However, you can be prepared for the many changes and equipped with the right knowledge and information. This is especially true when it comes to your pension fund as life’s ups and downs can have an impact on this.
Pension experts Portafina have put together some useful tips for the different twists and turns of life and how it may affect your pension pot. This is vital must-know information if you’re presently growing your pension and hope to enjoy your savings after retirement.
Changing Jobs
The job market can be volatile, and there’s no telling how many times you may get a new one throughout your working years. Whether you happen to change jobs unexpectedly or it’s something that you plan, you should know that your pensions are safe. The most glaring difference will be that your employer will no longer be contributing, but you’re still able to make your personal contributions nevertheless. If you’d prefer, you could move your pension to a new scheme altogether.
Going Bankrupt
Bankruptcy isn’t the end of the world, especially when it comes to your pension! It can be a financially turbulent time in your life but rest assured that all is not lost. Happily, your pension isn’t classed as an asset, meaning that receivers don’t have access to this money.
With that being said, you still need to talk to your pension provider and find out how going bankrupt will affect what you can contribute and how you access your pot moving forward.
Divorce
Deciding to end a marriage can be difficult on both parties involved. It can be even more stressful when you feel that the pension you’ve been contributing to over the years may be at risk. The good news is that there are ways around how your savings are shared out in a settlement. A few primary options include both pension offsetting which is where the value of the pension is offset against other assets as well as pension sharing.
Being Made Redundant
Despite popular belief, formal employment can be just as insecure as entrepreneurship. You never know when a company may go under, and you could be made redundant as a result. However, it’s important to remember that if this ever does happen to you, your pension shouldn’t be affected negatively as a result. It just means that your former employer will no longer be contributing, so you have the option to move your scheme to a new independent one or your new employer.
Terminal Illness
Many people are concerned about whether they’ll be able to access their pension funds in the case of terminal illness. Typically, the age to access your funds is 55, but the exception to the rule would be a serious illness. Depending on your provider, it’s possible that you could access a portion, if not all of your funds. However, this is very unlikely if you’re trying to access State pensions. To find out more about new developments in the world of pensions, you can follow Portafina’s Facebook page.
If you have any questions or would like to find out more, you can visit Portafina Discovery a handy resource hub. They also have lots of information on their social channels, YouTube, @Portafina UK on Twitter, and their LinkedIn.