When Was The Last Time You Reviewed Your Pension Funds?

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Once you establish your pension, it’s crucial not to overlook it. 

Your pension is a key component of your retirement plan, and regular reviews are crucial to ensure that it aligns with your financial goals.

If you haven’t started your pension yet, explore our article listing 9 reasons to consider a private pension in Ireland.

Why do I need to review my pension funds?

A pension fund is a pool of money set aside to provide financial support throughout your retirement years. 

The performance of your pension funds over time directly influences your retirement income. This underscores the importance of regularly reviewing your pension as a vital aspect of your retirement planning.

Market Volatility

Pension funds often involve investments in diverse financial instruments, including stocks, bonds, and mutual funds. 

Market fluctuations can influence the performance of these investments. 

Regular reviews allow you to assess how your pension funds are affected by market dynamics and whether adjustments are needed.

Changing Financial Goals

Your financial goals may change over time due to factors such as marriage, children, or buying a home, inheritance, changes in your company structure.

Regularly reviewing your pension funds ensures that your retirement savings align with your evolving financial objectives.

Inflation and Cost of Living

Inflation erodes the purchasing power of money over time. A periodic review helps you measure whether your pension fund is keeping pace with the rising cost of living, ensuring that you can maintain your desired lifestyle during retirement.

Employment Changes

Career shifts, job changes, or periods of unemployment can impact your pension contributions. 

Reviewing your pension funds allows you to make necessary adjustments based on changes in your employment status.

Tax Efficiency

Tax regulations can change, affecting the benefits associated with pension contributions. 

Regular reviews ensure that you are taking advantage of available tax benefits and making the most tax-efficient decisions.

Pension Fees

In the last 15-20 years, pension plans have changed a lot. One big change is that newer pensions have much lower fees. This matters because lower fees mean more money for you. 

When you keep track of these changes through regular reviews, you can make sure you get the most out of your pension by taking advantage of these cost reductions for better long-term financial results.

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How often should I review my pension?

The frequency with which you review your pension plan depends on various factors, including your age, financial goals, and market conditions. However, as a general guideline:

Annually

Conducting a comprehensive review of your pension plan on an annual basis allows you to stay informed about its performance and make adjustments if necessary.

Life Events

Additionally, consider reviewing your pension plan after significant life events such as: 

  • Getting married
  • Having kids
  • Career changes
  • Getting an increase in your salary
  • Relocating overseas
  • Taking out a mortgage
  • Receiving a lump sum inheritance

These events can impact your financial goals and may require adjustments to your retirement strategy.

Five Years Before Retirement

As retirement approaches, increase the frequency of reviews to ensure that your pension plan is aligned with your retirement income needs and goals.

For further insights, explore our article that guides you on effective retirement planning in your 50s and 60s.

Market Changes and Inflation

Keep an eye on market conditions and economic trends. If there are significant changes, it may be wise to review your pension plan to ensure it continues to meet your expectations.

If you initiated your pension several years ago, consider the impact of inflation on your estimated monthly pension. 

Will it be sufficient in today’s monetary terms to cover any lingering post-retirement bills? If your current earnings surpass what they were when you first began your pension, can you now allocate more funds to your pension, gaining additional tax benefits and enhancing your pension savings?

If in doubt, seeking advice from one of our financial advisors at True Wealth can provide valuable insights tailored to your specific situation.

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How can I get information about my pension funds?

If you’re a member of an occupational pension scheme, you should receive a Pension Benefit Statement, that is issued annually (or every six months for PRSA customers – Personal Retirement Savings Account). 

Your pension benefit statement furnishes details about your specific pension fund, outlining your contributed payments and total deducted charges. 

Additionally, the statement discloses the present value of your pension fund. It also presents future projected values, offering insights into the potential size of your retirement fund.

If you didn’t receive your statement, you can request it

For occupational pensions, reach out to your human resources department or the designated individual handling HR matters.

If you’re part of a public service scheme, get in touch with the relevant department at your workplace for information.

In the case of a personal pension, connect with the pension provider from whom you purchased the pension.

What should I do if I can’t find my old pension? Is there a way to trace my previous pension funds?

It’s not uncommon for people to lose track of their pension contributions, and the administration of occupational pensions may change without notice. 

Pension tracing helps you locate your pension accounts, assess their value, and make informed decisions regarding your retirement income. 

In simpler terms, tracing your pensions can potentially help you retire with more money.

Our pension tracing service streamlines the time-consuming task of locating and potentially consolidating your pensions. 

With thorough research and effective communication with multiple pension providers, we ensure a seamless and efficient process for you.

To find any missing pension plans, contact one of our financial advisors at True Wealth. You will be required to provide your name, employer name, employment period, date of birth, current address, and PPS number.

Learn more about the importance and benefits of tracing your pension to your retirement strategy.

Review your pension with True Wealth

Ensure the strength and vitality of your financial future by choosing True Wealth to review your pension. 

Our expert team is dedicated to providing comprehensive assessments of your pension plans and tailoring strategies to align with your unique goals and circumstances. 

Take the proactive step towards securing a stable retirement by entrusting your pension review to True Wealth, where your financial well-being is our top priority.

Gain valuable insights by exploring our Retirement Planning Guide, offering comprehensive knowledge to help you navigate the intricacies of retirement planning and pensions.

We are also experts in personal and business protection, savings and investments, pension tracing, personal and business financial planning, mortgages, and wealth management and extraction.

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All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.

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