New Job? Tell us about it and make sure you don't lose track of old pensions.
New Year. New resolutions, new goals and often a new job. Just like many things in life, this creates new changes. And your pensions are no different, so they’re not to be forgotten about.
A new job could mean a significant shift in financial circumstances and probably some change to pension arrangements. It’s something that many people forget about amid many things that pile up on your plate. But forgetting about your pensions could be dangerous to your long-term retirement goals. If you have changed jobs before, have you kept track of any pension savings you built up with previous employers? If the answer is no, the new year is the perfect opportunity o change your habits.
Switching jobs means your benefit package changes, meaning you will take with you a pension that is no longer ‘live’ or receiving contributions and more importantly, advice. The job you are moving to will have its own package, including a new pension scheme.
By law employers now have to offer employees a company pension and some experts now fear that in the UK there will soon be millions of “stranded pensions”, where people have lost track of what they have saved. Many will only wake up to this when they approach retirement. This is not some remote scenario that might happen far into the future. The Association of British Insurers (ABI) estimates that more than 1.6 million pension pots worth £19.4bn are already “lost” – the equivalent of £13,000 per plan. So, if you’re changing jobs, this is a good time to review your retirement plans and ask yourself some questions. When do I want to retire? Am I saving enough? Do I need to transfer my pension? If I have more than one pension pot, should I consolidate them into one? Do I know how many pension schemes I have?
Here at Reeves, we’ll be happy to help you with all of these questions and probably suggest a few others. There’s a lot of things to take care of when you start a new job, but do take the time just to send us an email to let us know, so we can take steps to try to ensure your pension arrangements are in order.
Let’s look at how we helped one of our clients, Daniel Norman, when he swapped jobs.
When Daniel gained new employment, he contacted us, and we reviewed his arrangements. He thought that his previous employer’s financial consultant had consolidated all of his pensions, but we found that one of the pensions – his biggest, into which he had paid for 14 years - had been forgotten. We undertook various searches and tracked it down and secured him about £60,000.
Changing jobs is an important step. It’s one of those key events in your life – along with birth, marriages and deaths – that’s going to have big implications for your financial and retirement planning. Just remember, amid all the excitement, to let us know about it.
Reeves Independent offers a free review of your pension situation. Click the button below to get started.
These articles are for information only. These articles are based on specific clients and their situation may be different from yours. No advice should be conferred from the articles. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.