Pensions

A warning

If you have one or a number of personal pension arrangement(s) which started before 2002, then you may be being charged too much by the Provider(s) for the running of them. This could apply whether or not you are still making contributions. The effect could be even worse if you have stopped contributions, or if you were to increase contributions, depending on the plan.

The reason for this is that, around the time that Stakeholder pensions were introduced by the Government on 6th April 2001, most pension plan Providers realised that, if they were to stay in the market, they would need to match the much lower level of charges that this legislation introduced. They introduced new Personal Pension Plans with the lower (and far simpler!) charging structures from that point.

Many of them also reduced the charges for their existing pension customers to a similar level, realising again that, if they did not, they could lose this business if the customer became aware of the fact that there were suddenly now far less expensive options available.

Then again, some of them did not. Also, some of the ‘reduced charges’ policies still carry some higher charges. This can make a large difference to the final value of your fund, as the charges are taken directly from it every single year.

We are experienced in analysing any ‘old style’ pension policies and advising on your best course of action for the future. We would also carry out a fund performance analysis as a matter of course. If we can only decrease the charges taken every year for you, you will have a higher retirement fund –This much is guaranteed. If we can also increase the performance potential for future years, without exposing it to undue risk, then the two combined can have a dramatic effect for you.

Remember, with Surrey Financial Advice, any initial consultation is free of charge (apart from a cup of coffee, perhaps) and you are under no obligation to proceed.    [Contact us]