Talk Money Week: consumers encouraged to check pension

Today marks the beginning of the Money and Pensions Service’s Talk Money Week with the theme this year being ‘Do One Thing’ – encouraging everyone to take a single, impactful step towards better financial health. MAPs said: “This year, we’re asking stakeholders, partners, organisations and businesses all over the UK to encourage their own audiences to Do One Thing that could help improve their financial wellbeing.” The organisation added: “It doesn’t have to be huge. In fact, it could be as simple as asking them to check their pension statement.” It's a theme taken up by Chris Flower, Chartered Financial Planner at Quilter Financial Advisers. He said: “Checking a pension statement should be a high priority to ensure that people are fully aware of the income they’re on track to secure once they have reached retirement age. Many people disregard these statements, usually not giving them more than a quick look, but regularly reviewing these statements is a vital task to ensure financially stability for later life.” He pointed out that pension statements provide key information about retirement pots, such as how investments have performed, the fees paid on the pot, and the overall income once someone retires. The PLSA’s Retirement Living Standards suggest that a comfortable retirement requires a single person to have an annual gross income of £43,100 per year. Mr Flower said: “It isn’t uncommon for a pension fund to experience short-term volatility, but if this proceeds to become a longer-term issue, you may want to consider re-evaluating your investments.” Selecting the appropriate investment fund is essential for maximising pension growth. Mr Flower said. “Most pension schemes will put people in a default fund if they do not make an active selection, but it is important to check it is suitable for their needs.” He said people also need to review expressions of wishes to ensure a pension goes to the correct beneficiary following changes announced in last week’s Budget. It introduced a change to how pensions are treated for inheritance tax purposes, which will come into effect from 6 April 2027. Mr Flower said: “One key aspect of the change is that passing on unused pension funds to a spouse or civil partner will remain exempt from IHT. However, payments to other individuals, such as children, will be included in an estate for IHT.” He said Talk Money Week is the perfect opportunity to encourage people to take control of their financial future. “By checking pension statements and making necessary adjustments, people can ensure they are on the right path to a secure and comfortable retirement.”

Talk Money Week: consumers encouraged to check pension

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