Retirement is something that many people don’t think about enough. It may seem like a long time off, but in a blink of an eye, it’s right around the corner before you know it. That’s why it’s important to periodically review your pension benefits and retirement plan.
As a rule of thumb, you want to adjust your investments in your pension plan as you age. When you are young, you can afford to be more risky with your investments. You’ll get a larger return with more risk. However, as your retirement builds up and you get closer to retirement age, you may want to shift your pension investments to a steadier, less risky plan.
Also, keep in mind that over time, your life situation changes. You may have been single when you first started working, but over time, you may get married and start a family. You need to ensure that your beneficiaries are all up to date on your retirement plan.
Of course, the overall economy factors into the mix as well. In the recent recession, retirement plans have also taken a hit. I’ve personally gone against the grain and adjusted to a more conservative investment plan during the recession even though I’m years from retirement. I have slowly adjusted back to a more aggressive plan as I felt the economy recover.
These are just a few of the considerations in reviewing a retirement plan. It may even be advisable to employ a professional pension review, such as high street wealth management to assist you with a pension review. Click here for their pension review service.
Think of the different ways that your pension may need attention:
Perhaps your pension management company is over-charging you on fees. Do you need to change?
Have you lost money on your pension investments in the economic downturn?
Has your family grown? Do you need to ensure that your beneficiaries are up to date?
Will it be strategic to roll over your pension into a different fund?
It’s a good idea to take a look at your pension at least annually to determine if you need to make any changes or address any emergent situations.