WHEN YOU encounter different hurdles in life, you seldom think about how it might affect your pension. However, this is something worth considering because these are the finances that will keep you during your retirement years. While some significant changes may not make a difference to the status of your pensions, others will.
In light of this, the leading pension experts at Portafina have put together a list of life events and how they could make an impact on your pension for good or bad.
People all over the world are presently struggling with illnesses that are affecting their physical, emotional and financial wellbeing. During this challenging time, one thing that they may want to access is their pension fund. If you ever happen to be in such a situation, you should be aware that the general rule of thumb is you can’t access your funds until you’re 55 or older. However, most policies will allow you to gain access in the case that you’re seriously ill.
Getting a New Job
A more pleasant life event that could occur is starting a new job. You may nevertheless be concerned about what this means for the pension fund that you had with your former employer. Every time that you get a new employer, they’re obligated to enroll you into a new pension scheme.
It is also necessary for both you and your employer to contribute to the pension fund and the minimum is 8% from April 2019. In some instances, it’s possible that you can transfer into a new scheme or any other existing one that you have. If you want to stay updated with the latest pension developments, you should make sure you’re following Portafina’s Facebook page.
At times, after spending most of your life in one country, you want to change locations. Although understandable, think about how this could affect your pension funds. For instance, it may be more difficult to access your pensions, and it’s possible that you won’t qualify for tax relief. Be sure about the terms of your policy and what the implications will be when you move abroad.
Being Made Redundant
Every day companies go under, and people are made redundant at businesses around the world. If this happens to you, know that you won’t lose your pensions and they shouldn’t be negatively impacted. Much like when you get a new job, there’s a possibility that you could move your contributions to a new scheme or a personal pension pot instead. You should also note that you won’t be receiving contributions from your former employer anymore.
Anyone can go bankrupt at any point in their life but knowing what steps to take after it happens is vital. If you’ve got a personal pension especially, you should know that it isn’t seen as an asset. Therefore, the appointed receiver can’t take this portion of your money from you. It’s advisable that you know where you stand and get advice about how you can save into and access it.
If you have any questions or would like to find out more, you can visit Portafina Discovery a handy resource hub. They also have lots of information on their social channels, YouTube, @Portafina UK, and on LinkedIn.