Public sector workers are making a stand, State Pension is under threat and world markets are in disarray. Newspaper headlines are full of one pension scare after another! So will there be enough in the pension kitty when you eventually come to retire? You should be concerned!
After all you work long and hard enough and so should expect to reap the rewards of your efforts. No matter what you have in mind for your retirement or when this is likely to be, you should understand what you could expect from the pensions you have built up and then take steps to maximise their return.
You should check out what your employer has to offer as many company schemes are good and low cost and you could make further contributions to the company scheme to build your retirement pot. Alternatively you could consider going it alone and commit to making your pension savings to a personal pension or SIPP, which provides a much wider choice of investments than the standard personal pension.
With the SIPP option, depending on the specific services you require, there are a host of solutions at your fingertips. Some SIPP providers offer a personal service
and hands-on help, leaving you to take full control of the investment choice. Some SIPP providers will prefer to offer their services through a financial adviser
who takes responsibility for all investment decisions. The adviser will make a charge for this service.
Direct SIPPs allow you to access services and take full responsibility for all decisions including your specific investment choices. What better way to gain an understanding of markets, potential returns and retirement prospects but beware you should also be prepared for the downsides of this approach? After all even the best investment managers make poor decisions in hindsight!
Looking for a good idea for your New Year’s resolution? Why not make it that 2012 is the year to start seriously planning for your retirement and not leave this to chance any longer?
Getting serious now rather than later could secure the retirement you deserve.
2012 New Year resolution – steps to plan for retirement
- Check out your workplace pension as this is often a low cost option
- Make a commitment to increase regular contributions
- Review all pensions that you have accrued to date as you may want to bring these together in one place
- Review different options for pension saving such as personal pension or SIPP
- Commit to taking an interest and not leaving your retirement plan to chance – such as, a review at six monthly intervals