Archive for August, 2014

How to secure a pension plan?

Tuesday, August 12th, 2014

pension planAre you about to retire soon and looking for ideal pension plan? Well, the retirement is the time to relax after your years of hard work and hence you need to get hold of the pension plan that would accommodate a great life for you -even when you are not having the monthly salary. It is said that a retirement backed by a good pension plan is the ideal retirement. Now, there is a great bunch of pension plans around but not all would be compatible for your specific needs. Moreover there are many scam plans in the market as well. Thus, you need to be really careful while securing the best possible pension plan for you.

Before getting into the tips for securing a suitable pension plan it’s to note that you have to be careful about your needs or desires post retirement while choosing the pension plan. Whether you want to go out on a world tour or lead a quite life at the countryside- each of your needs will have a profound influence on your selection of pension plan.

Comparative study

This is one of the significant points while choosing the right pension plan which many tend to miss out. You have to take a thorough market study on minimum 5-6 potential pension plan providers before you finally sign up with the one. Follow the market reputation of the providers, service approach and customer testimonials. Besides, you should always check out key facts on each of the plans studied. The key fact is like the summary on the plan to ensure an easy understanding at a glance. The plan providers are bound to offer you the key facts & you have the right to complain if they aren’t acting accordingly.

If studying each of the providers individually seems strenuous, go for the comparison websites.

Check out contributions

You have to ensure that you are okay with the pension plan contributions. There might be some minimum payment requirement which the plan holder would have to submit to the provider. If you are on taut budget or struggling with irregular income, you have to check out beforehand whether you will comfortable with the contributions or not.

Be careful about charges

Check out what charges you would be paying & when. These would include transfer charges, administration fees, charges for investment management, penalties on payment miss out or early pull up of pension. Charges which are extracted from the policy holder’s fund would affect the pension amount he would be receiving end of the day. Charges for the stakeholder pensions tend to stay restricted to some set level.

Consult financial adviser

Before you finally sign up with a pension plan, it’s advised that you consult with an independent financial consultant. Pension plans are complex affairs and it’s not possible for a layman to understand the exact risks and benefits of the policies. A neutral financial consultancy would be an excellent help here to ensure a comprehensive grasp of all the points of the pension plans.