Your pension is possibly the last thing that you think about when life throws something dramatic at you. When times are tough, it can be hard to focus on the future, especially if you’re already dealing with stress or grief. The problem is that those life-changing events do have an effect on your pension, and your savings will be affected depending on what it is that you’re going through.
Luckily, Portafina has released a series of tips to cover the biggest of dramatic life changes and can help guide you through the most stressful of times. If you’re concerned about how your pension will be affected by major life changes, here’s what you need to know.
In the case of death
Not many of us like to envision our death, but if you die and do not have provisions in place, your pension may go awry. For instance, if you intend to leave your pension payments to friends, family, or even a charity, make sure that there are no restrictions on your pension plan. The more that you know in advance, the easier it will be to plan for what happens after you die.
Moving Abroad
Millions of Britons retire and then relocate to another country. What most people don’t factor in their travel arrangements is how their pension will be affected. It’s important that you check your plan well in advance to avoid problems. Moving to another country could mean that you encounter problems accessing your pension, and you may lose out on tax relief as well.
Being made Redundant
There’s nothing quite as traumatising as being made redundant, especially if it’s unexpected. If you’ve been paying into a workplace pension, it’s essential that you know where you stand. You may be able to transfer your payments to another policy, or simply carry on paying into it (although you will lose your employer contributions in this case). If you have a personal pension it may be worth transferring your workplace pension into that scheme.
Filing for Bankruptcy
Your pension will not be classed as an asset if you are forced to declare yourself bankrupt. There may be some rules and regulations that you need to be aware of that will dictate how and when you can access your pension savings, so it’s important to know exactly where you stand should you see bankruptcy looming on the horizon.
Serious Illness
If you become seriously ill, you may be under the impression that you will be able to access your pension before the designated age. While this is true for many personal pension plans, if you’re sticking with the state pension, then this is not the case. In some cases, you may be able to access your pension money, but this will only be possible if you have a private or workplace pension in place.
New Jobs
It’s exciting starting a new position, but you should know that if you are over 22 and you are earning more than £10,000 pa, then your employer is legally obligated to include you in a workplace pension. If you have a pension from a previous employer, you may be able to transfer your totals over, but this will depend on your circumstances. Be sure to check Portafina’s Facebook for regular updates on pension advice.
Dealing with Divorce
While this is always an emotional time, you should know that your pension will most likely be included in your list of assets. How it will be factored into any settlement will depend on your personal situation, but it’s worth knowing that there is a lot of flexibility and several options available. Always clarify your situation as quickly as possible.
If you’re worried about your pension or you’d simply like to feel more secure about your future, follow Portafina on their social media pages. They can be found on LinkedIn, Twitter and YouTube, and can help you understand exactly what you need to know about your pension and your future.
