Dust off that pension and get it working for you
Posted by Nick Lawlor on November 25 2013 @ 12:12
Have you ever switched from one employer to another? Have you ever been made redundant? Have you spent some time working for yourself? If you can answer yes to any of these three questions then ask yourself one more question: did you start a pension plan during that time. If the answer to this question is also yes, then there is a good chance that you have a pension plan somewhere which isn't working as hard as it could be.
It was the arrival of Personal Retirement Savings Accounts (PRSAs) a few years ago that made it easy for people to take their pensions with them when they moved jobs or were made redundant. Before PRSAs came along, people who were moving from one employer's pension scheme to another usually had to leave the value of their pension in their former employer's scheme until they retired. This meant that the value of their pension was at the mercy of the old employer's advisers and investment managers. What's more, with no new contributions being made the ongoing management fees and charges could eat away at the pension value over the years.
The good news is that if this is a scenario you are familiar with then there is a very straightforward solution. You can convert the residual value of your former employer's pension into what's called a Buy Out Bond. This will give you more control over how and where the value of your pension is invested so that it better reflects your appetite for investment risk and reward.
With a Buy Out Bond your money will grow tax-free until you retire and the annual management charges are generally low, typically between 0.5% and 1.5%. Another very important advantage of Buy Out Bonds is that in certain circumstances you may be able to get access to the value of your Bond when you turn 50, rather than having to wait until the usual retirement age of 65.
A personal pension becomes even more important if you are self-employed. That’s because with no employer benefits to fall back on and an often variable income pattern, people who work for themselves usually realise the importance of careful forward financial planning. However, when self-employed people go on to join a company as an employee they usually have to park their personal pension if they want to join a company scheme. Many of these people will usually just leave their personal pension alone and stop paying into it. If this is what has happened in your case, it is well worth having your personal pension independently reviewed with a view to ensuring that your money is properly invested and that the ongoing management charges are as competitive as can be.
In fact any pension that was taken out more than 10 years ago or so should be urgently reviewed by an independent financial adviser. It is only relatively recently that the charges and fees levied on personal pensions have become more competitive as new regulations have made the charging structures more transparent. An independent adviser can review the fees on an existing pension and either negotiate more favourable terms from your existing pension provider or advise you on the possibility of moving your pension to another provider.
Which brings us to the issue of moving from one pension provider to another. While many people don’t think it’s possible, there is actually is no obligation on you to stay with the same provider. It’s now easier than ever to switch pension providers to secure lower fees and charges, higher allocation rates or an investment strategy that is more in tune with your retirement ambitions.
Lastly, do you know how secure your pension fund is? It’s an unfortunate fact that many pension funds have suffered from the economic uncertainties of the last few years. While pensions are long-term plans that are designed to accommodate the lows as well as the highs of the investment cycle, there will come a time when risk-taking needs to end and a more pronounced focus on security begin. This is typically 10 years or so before your planned retirement. That’s when you need to talk to an independent financial adviser about rebalancing your pension plan so that it is weighted towards the security of bonds and cash and away from more volatile assets such as equities and property.
If you have a personal pension plan which has been left on the shelf for a while, it’s well worth your while dusting if off and speaking to an independent financial adviser. You should be pleasantly surprised by how easy it can be to release more value from your pension and make it work even harder for you.
Nick Lawlor is the owner of Lawlor Financial Planning and is one of only a small number of Certified Financial Planners or CFP®’s operating in Ireland and is based in Keeper’s Cottage in Leixlip. Contact nick@lawlorfp.ie or 0863161232 for a complimentary consultation. Nick Lawlor Financial Planning Ltd trading as Lawlor Financial Planning and Simplysave is regulated by the Central Bank of Ireland. Lawlor Financial Planning does not take responsibility for individual financial decisions made based on this article.
Melva
Oliver Johnson Moore
Rosie Rhoma
Dr Gerhard
Dr Gerhard
mark jackson
mark jackson
ROLAND HOOK
CHESTER BRIAN
Ardan Clonney
Moore robbinson
Luis Root
Luis Root
Theresa L. Bernard
Harvey Lee
Harvey Lee
Luis Root
Luis Root
Chloe Raymond
Jane Robin
Jane Robin
Jane Robin
Mrs.Emilia Fedorcakova
Chloe Raymond
Isabella Tyson
Nathan Davidson
Elizabeth Steven
Muhammed Emir Harun
ANDREW KELVIN
fred
Daan Sophia
Alexis Ohanian
charlie bean
Jamesolsen Terrazas
Jamesolsen Terrazas
Muhammed Emir Harun
Jamesolsen Terrazas
AZRA ISHAQUE
Jamesolsen Terrazas
Mrs.Carol Anderson
Michelle Huxford
Michelle Huxford
Michelle Huxford
CH
harrison saban
CH
Hugh mckeon
Luna Mora Esther
Angelita Taylor
Brianna Lee
Laurel Dawalt
Debbie Holmes on Feb 21 2018 14:05
KAY on Feb 21 2018 14:07
badigantla srinivasa
Vanessa Cowen
Michelle Huxford
Vanessa Cowen
Vanessa Cowen
janice on Mar 14 2018 01:03
Annie Joe
Annie Joe
Bernard Correy
Heather Patrick
Heather Patrick
Bradley Garrett
Bradley Garrett
Daan Sophia
Annie Joe
Vanessa Cowen
Karen Brown
Willard Clark
Heather Patrick
Mr John Paul Nowacki
Mr John Paul Nowacki
EllinasFinances@gmail.com
FIFOCapitals@gmail.com
Bradley Garrett
collins
Susan
Helen Troung
Kelvin Brigth
Vanessa Cowen
Dr Robin Christopher
SuiteCapitals@gmail.com
PergoCF@gmail.com
GuaranteeLoan
Cheerful Loan financier
Karen Brown
WARREN
Walsh Robert
Martin Steffens
Emily Thomas
MR WILLIAMS on Apr 17 2018 22:23
Annie Joe
Heather Patrick
Heather Patrick
Puthai Nattaradol
Jones Havard
Loyalty
Royalty
Williams Gareth
Trevor Cohen
fred
Karen Brown
Karen Brown
Walsh Robert
david verney
Philip Turnbull
Jessica Shirley
Odenore omon
Karen Brown
George Mason
Maria Jose
Martin Steffens
H.S. Holdings LLC on Jul 21 2018 20:03
Dr williams
Dr williams
Dr williams
Carson Noah
Dr williams
dr robert
collinsbill
dr robert
dr robert
dr robert
dr robert
robert williams
robert williams
dr robert
robert williams
dr robert
dr robert
dr robert
dr robert
dr robert
dr robert
dr robert
dr robert
dr robert
dr robert
Walsh Robert
robert williams
dr robert
dr robert
dr robert
dr robert
robert williams
dr robert
robert williams
harrison saban
MIKE OSTLER on Feb 11 2019 17:15
Kelvin Brigth
Kelvin Brigth
mike1 on May 14 2019 20:03
Mishra Nandan
david verney
Dr Robert on May 24 2019 10:06
Dr Robert on May 24 2019 10:08
Jon McGuire
david verney
Julie Rihie
Jon McGuire
Robert Bouffad
Robert Francis on Sep 19 2019 17:12
findlay
Wright
Philip James
Saara Kemi
MR KONSTANTINOS DIMITRIOS on Nov 22 2019 09:54
melina on Nov 24 2019 14:28
James Vincent on Nov 29 2019 05:53
KETESHA FRANK on Dec 03 2019 17:32
Mr. Richard Cosmos
John berry
EllinasFinances@gmail.com
Paul
SMITH on Dec 23 2019 21:23
Smith on Dec 23 2019 21:25
RILEY
Dolly Zeller
UNITED STATES OF AMERICA
UNITED STATES OF AMERICA
Mrs Abigail Mills
Mrs Abigail Mills
Rethabile Grace Thandolwethu
Landrew Paul
Jeannette Ramona Tallulah
Jeannette Ramona Tallulah
Loan Offer Apply Now
Dolly Zeller
Dolly Zeller
GREY on Jan 11 2020 18:37
APRIL on Jan 11 2020 18:39
Joyce on Jan 11 2020 18:41
Peiying
HOW I GOT MY LOAN
HOW TO STOP DIVORCES
CURE TO HIV:oscardilan68@yahoo.com
CURE TO HERPES:oscardilan68@yahoo.com
WELCOME TO ILLUMINATI GIVERS OF WEALTH AND POWER
HOW TO GET EX:oscardilan68@yahoo.com
WE OFFER LEASE BG,SBLC AND MTN
david verney
Carmody Shawn
scott james
Dolly Zeller
Dolly Zeller
NIOME on Jan 19 2020 20:13
Julie Richie
Loan Offer Apply Now
APRIL on Jan 22 2020 15:13
APRIL
Willie Jackson
LOVELINE on Jan 23 2020 21:47
Loan Offer Apply Now
Dolly Zeller
Dolly Zeller
WE OFFER LEASE BG,SBLC AND MTN
Julie Richie
scott james
york
yun janghwan on Feb 01 2020 06:49
James Clark
Elizabeth on Feb 09 2020 16:53
Dr Benjamin Scarlett Owen
Dr. Bradley Louis
WE OFFER LEASE BG,SBLC AND MTN
WE OFFER LEASE BG,SBLC AND MTN
Djebali Hazem
Liam Callum
Tina Brooks on Mar 10 2020 22:16
carolino
Philip James
David Robert
Chris Fluent
Chris Fluent
FREDY OUSEPH
John Tim
scott james
Dr Benjamin Scarlett Owen
blaine lorcan
Dr. Bradley Louis
Dr. Bradley Louis
muhammed
Linda Mark
Linda Mark
Dimitrij Conradi
scott james
scott james
Kelvin Faiz
Ashraf Billy
yun janghwan
W & J O'Shea Roofing
May Gary
scott james
blaine lorcan
Anton Andel
Simon Federman
Kevin
Dr. Bradley Louis
Baktoo Mubarik
alexander castro on Jul 14 2020 20:16
Dr. Bradley Louis
Dr. Bradley Louis
Dr. Bradley Louis
Dean Thomas
UNITED STATES OF AMERICA
SWEENEY
Dr Nico Scott
scott james
scott james
Leores M Jazbel
Mike Morgan
scott james
scott james
Elvis Roberts
Simon Federman
Mike Morgan
Leores J Miguel
scott james
scott james
Dimitrij Conradi
BENJAMIN INVESTMENTS
Samri nazeer
Robert Bouffad
james
Alfred Lampe
Adriana
Justin Riley
Justin Riley
Mike Morgan
fake birth statement on Jun 09 2021 03:48
Alex James
Robert Bouffad
Mrs Maria
EASON RONNIE
Bill Johnson
maria wilson
Dr, Benjamin Owen