Regularly Review Where Pension Fund Invested
Published / Last Updated on 11/09/2020
We have likened investment funds to our cars and homes for many years.
If you do not check your roof, boiler, decorate, weed the garden regularly, your home will fall into disrepair. If you do not check the water, oil, tyre pressure, service and MOT your car, it will break down.
This is the same for where our pensions are invested.
- Your pension fund may have a series of platform, adviser and fund manager charges. Are these competitive?
- Your pension fund may have a series of different investment funds to choose from. Are the funds performing well against similar funds?
- Are your pension funds invested in the right area given the current economical and political climate? The economical or political situation may have changed in the last year, are you invested where you should be?
- Are your pension funds invested in the right area for your risk profile?
- Are your pension funds invested with the right balance regarding your tolerance to losses? E.g. What if you are due to retire next year and 6 months beforehand, there is a stock market crash? Were you invested defensively?
- Did you de-risk as you approach retirement? Do you really want to put off your retirement for a few years because the stock market fell?
For the sake of a few hundred pounds per year in advice fees, could your adviser add value and make or save you that? If you were advising ‘you’, would you just ignore your pension fund and hope for the best? The are so many reasons to regularly review where your pension funds are invested.
