Getting back on track with your pension

Although the Covid crisis is far from over, many of us are already counting the financial cost. With six months of economic disruption since the crisis broke in March, many of us have had our carefully thought out financial plans disrupted.

We live in uncertain times. Some of us have been saving money by swapping the long commute to the office to a short walk to the spare bedroom, while for others there have been lost jobs, pay cuts and anxiety.

At Continuum we will be looking at the effects of the crisis, and how we can help you get over them – and in this article we will be looking at your pension.

Is your pension safe?

Your pension is the key to a comfortable and enjoyable retirement, so it is vital that it is there when you need it. Challenging times can mean problems for many businesses. Even large and established companies can fail.

Pension providers may not be completely immune from the effects of turbulent markets.

However, the good news is that in most cases, your employers pension plan will be ring fenced and safe, while the chances of a reputable pension provider failing are remote.

The even better news is that if something does go wrong, compensation may be available.  FSCS – the Financial Services Compensation Scheme can protect private pensions that are provided by UK regulated insurers, as long as they qualify as ‘contracts of long-term insurance’. A common example is an annuity, where you exchange the cash in your pension for a regular income from an insurance company.

They will cover pensions with no upper cap – so if the worst happens to your pension provider, the worst that will happen to you is a delay in payments while things are sorted out for you.

Occupational Pension Schemes may be protected by the Pension Protection Fund, which can help people with a defined benefit pension or a Defined Contribution scheme, when an employer becomes insolvent.

Have you taken a pension holiday?

If your income has been reduced by the Covid crisis, you might have been forced to take a break from your pension contributions. Getting back on track must be a priority. Talking to a Continuum adviser could be your best decision when looking to repair any holes in your pension plans.

Getting help with your pension

You work hard to build up your pension, so it’s crucial to make sure your money is safe. Getting expert support, and someone to keep a watchful eye on your arrangements could be vital now.

A call to us at Continuum could help. We can look at your current arrangements and help you to get your pension savings on track.

If the events of the past months have made you want to think about bringing your planned retirement forward, or if you want ways to make your pension pot work harder, we can help.

We can make safeguarding your pensions part of a full pension review that could leave you a great deal better off as well as more secure.

Call us today to get our help to get your pension back on track– and help you make the most of it.

The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable retirement strategy, you should seek independent financial advice before embarking on any course of action.

The value of investments can fall as well as rise and you may get back less than you invested.

Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means tested benefits.

Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.