I read an article recently which highlighted some research within the UK regarding consumer knowledge of their own pension provision. The results (not surprisingly) highlighted the fact that more than 80% of working adults have little or no knowledge about either their own pension forecasts and very little knowledge of their options, both pre and post retirement.
So, any time spent now on evaluating your current position (regardless of age and whether or not you are already retired) would in my view be a sensible move and from experience there are a few key points you need to ask yourself in order to start to formulate your own retirement plan. These are:
Previous Pension Schemes - Defined Contribution and Defined Benefits schemes
Your current employer or personal pension plan
State pensions - what you can expect and how to get your own personal forecast
Simplifying and consolidating previous schemes
A guide to SIPP's
Why its a good idea to diversify
Target Retirement Date (TRD)
Total pension fund now and Total forecast at TRD
Options at TRD
Tax free cash (TFC), Drawdown rates and calculations
Other drawdown options post retirement
Outgoings now and post retirement outgoings
Whilst this list might seem a lot of work, I will be covering each topic in future blog posts, to hopefully help you through the pensions maze. That's the reason for this blog - to share my experiences and the knowledge gained since starting my own journey 5 years ago, as I realised I was fast-approaching middle age.
Catch up soon (and please don't forget to subscribe to get my latest updates)