45% Of Adults Have Never Reviewed Their Pension

Most people, throughout their day to day life, don’t commit a lot of thought to their pension plans or their future retirement. If you are in your 20s, 30s and even 40s those years seem very far off and it is hard to even imagine them. You are so busy with all of your day to day responsibilities in the here and now that you will likely put very little thought towards your pension.

If you haven’t ever really thought much about your pension, you are not alone. A recent survey conducted by Barrett Asset Management revealed that 45% of non-retired adults said that they have never looked into their pension. When they were asked about making changes to their investments and their pension to better reflect their particular risk profile, 38% said that they had never done so.

This survey reveals that there might be millions of people in the UK who have their pension assets poorly allocated. They might have inappropriate levels of risk because they have not reviewed these investments in so long and they have not sought out professional advice.

Without staying on top of pension performance and making the necessary adjustments to pension plans, it is likely that pension funds will not be as profitable as anticipated. Regular reviews ensure that a pension fund will be enough to support retirement goals.

People have Stopped Contributing to Pensions

Not only have many people stopped reviewing their pension funds, they have even stopped contributing to them. The economic downturn has shown that one in 10 people have either stopped paying into their pensions or reduced their payments over the last 5 years.

According to a recent survey which was conducted by the BBC, half of people between the ages of 20 and 60 are not paying into their pensions. This is not a wise idea, as stopping contributing is not the best plan. Giving your pension a good review with the help of professional advice is a much wiser move.

Why Reviewing Your Pension is Important

Reviewing your pension is very important and it is isn’t just something that you should do when there is a significant change in the economy or the markets. It is something that should be done regularly so that you can make sure that your investments are performing at their best. A pension review will show you how your pension investments are performing and let you know whether or not you need to move them somewhere else.pensioners

Also, when you initially set up your pension it will have been based on your circumstances at the time in anticipation of your retirement. Your circumstances or family dynamic may have changed since then, which means that you might have to adjust your pension in order to better match your current situation. For example, you might find that when you review your beneficiaries you still have an ex-spouse listed. You will be able to change this to better reflect your current situation.

Another reason why you should be reviewing your pension is that legislation is always changing and you might need to optimise the plan so that it fits in with the new legislation. A pension review could also help you to protect your investments against a volatile market, taking preventative measures to keep your money safe from a market downturn.

If you are approaching your retirement years, this is an important time to consider lowering the risk of your portfolio. Making adjustments to your pension throughout your life will ensure that it performs as well as it possibly can. This will help you to make sure that you are in the right position when retirement time finally comes.

Kay Brown is a blogger who writes about financial tips that are relevant to UK families, including savings, budgets, undergoing a pension review and effective money management.

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