Pick a pension plan that suits you

It’s often said that you’re never too young to start saving for your retirement, and it’s just as accurate to say that you’re never too old.

By Keith Pressler, senior consultant, Taylor Patterson

What remains true is that the best time to begin is right now. And even if you already have your pension plan in place, now is also a good time to review it.

Many people assume that a good pension plan will allow them to retire at 65 and pay out a set amount. But that’s not for everyone. If you want to retire sooner, or even later, with more income, or maybe less, then it’s important to ensure that your pension plan can accommodate this flexibility.

Further, your pension was likely put in place to take care of the wants and needs that you predicted when you were at a certain age. But those wants and needs change as individuals go through life.

You don’t need to stick with your initial plan. If you’ve been habitually putting money into your plan for years, or even decades, you have the option (and we encourage you) to review your retirement plan and change it if your life goals have evolved.

And while you’re checking the suitability of your plan, we also recommend asking questions of your pension provider. They are not all created equal!

The new pensions freedom rules offer great flexibility to many people. For the first time, an individual can pay into, accumulate and draw out of a pension - all at the same time, if they wish. But did you know that not all pensions providers offer this service? There’s no stipulation that they must. Whether you’re interested in taking advantage of pensions freedom or not, this is a timely reminder that savers should shop around to find a provider which best suits their needs.