Retirement savings over time

Top tips to protecting your pension for life

on June 3 | in All, Personal Finance | by | with No Comments

Many people leave their pension to grow over time without giving it much thought throughout their lives. However, when an event happens that alters your financial situation and the state of your pension, you may start to think about how you can protect your retirement pot for life. This article will, therefore, give you the key details and advice to ensure that you are able to claim the full pension that you deserve when it comes to your retirement.

Part-Time Work

  • Ask your employer about your workplace’s opt-out pension scheme as soon as you start a new job. This will ensure that you know how you will pay into it, and how much this will affect your pay-check each month, as well as the terms and conditions behind it. Pensions can be confusing; however, there are experts you can turn to for help. Portafina specialise in offering pension advice, find out more about them here.
  • Your employer must pay into your retirement fund each month by meeting the amount that you pay into it. Over time, your employer must donate an established amount of their income into employee pensions due to government regulations.
  • Making voluntary contributions as a part-time employee may be the best way to protect your pension and ensure that it grows at the rate that you need it to, as your pension will be considerably smaller than those of your full-time colleagues.
Money savings as people grow old
Money savings as people grow old

Redundancy

  • You can opt to keep your pension where it is and continue to pay into the workplace pension that you have already established, which may be the best option while you are looking for a new job.
  • Redundancy gives you the freedom to do whatever you want with your pension. You can transfer it into a private scheme or a new workplace pension when you have found another job. This enables you to keep your assets in one place and monitor their growth.
  • A redundancy sacrifice can help you to protect your pension by ensuring that your employer donates your redundancy pay into your retirement fund as a type of employer contribution. This can help you to make a last one-off payment if you will not be able to do so for some time after this, ensuring that you keep up with pension payments.
  • You can also split your retirement fund between an immediate check and your pension to ensure that both your financial future and your present financial needs are covered and protected.

Bankruptcy

  • Before May 2000, bankruptcy meant that you would be appointed a Trustee of Bankruptcy. The government will have given them all of our assets, including your workplace and private pension, and these will be used to pay off any potential debts, outstanding payments, or creditors.
  • After May 2000, bankruptcy means that your Trustee can protect your pension claim. You can access your pension for a short time through an out of court agreement decided between you and the Trustee, and which can help you to combat any financial situations that you need to establish.

Portafina can provide you with more information on your pension and how to protect it on their social media channels (Twitter, Facebook, LinkedIn, and YouTube).

Sources: companieshouse.gov.uk

The importance of making retirement plans
The importance of making retirement plans

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