Pensions have taken centre stage in the news recently with regards to the future of the ‘triple lock’ feature, amid record rises in earnings of 8.4% in the 12 months to April 2021. The ONS has stated that the rise is artificially high and is actually the result of a depressed market returning to pre-pandemic levels. The increase in wages for the three months to April 2021 was reportedly 5.6%.
Despite these record figures, the government has stated it is committed to keeping its ‘triple lock’ promise, in which pensions rise annually by either the consumer prices index (CPI) measure of inflation, average wage increase or 2.5% – whichever is the largest.
Giving you visibility on your pot
Whether or not this affects you directly, it may have brought the topic of pensions to the forefront of your mind. Do you ever wonder how your pot is getting on? Maybe you have two or three in different places but you aren’t sure how to track them? In fact, some people can have as many as six or seven different pensions, and the prospect of checking them all might seem like a daunting and challenging task.
Instead of treating it as an arcane, elusive subject, Brunsdon Financial aim to be clear and transparent when it comes to discussing your pension. We offer comprehensive personal pension audits, whereby we carry out a forecast and analysis of your pension, ensuring that it’s on track to achieve your retirement goals. We can show you the fund performance, check it’s in line with your chosen risk factor and also any charges.
A pension is an investment, and while we always hope the general trend is upwards, having a good idea of what the markets are doing and how your pension is performing can offer visibility and peace of mind.
Time to give your pension a health check
We appreciate that pensions are not top of everyone’s priority list; for many of us they tend to just work away in the background. But it’s important to give them an audit at regular intervals, not least because there may be tweaks suggested by your Adviser that could result in further savings. If nothing else, it’s always good to know where you’re at financially, whether your retirement is imminent or twenty years away. To discuss your pension and future savings plan, please contact your Brunsdon Financial Adviser.