6 Life Events That Could Make or Break Your Pensions
During life, people tend to hope for the best but prepare for the worst. It isn’t usually possible to accurately predict what life events will take place and how they could affect you. However, one thing that you can do is focus on variables that you can control, and one of them is your pension funds.
To give you better insight into life events and how they could affect the pension that you’ve been growing over the years, Portafina has put together a few tips.
- Being Made Redundant
One crucial thing every business has to know is when it’s time to cut their losses. As an employee, this could result in you losing your job and suddenly becoming unemployed. This situation, however, won’t negatively affect your pension fund as the only thing that will change is that your former employer will stop contributing. In this case, the ball is in your court as you could decide to move your pension to a new scheme or leave it where it is and continue contributing.
- Going Bankrupt
Aside from being made redundant, bankruptcy is another life event that could threaten your retirement savings. However, this shouldn’t break your pot seeing as your pension aren’t an asset. The best move to make in the case of bankruptcy would be speaking to your provider and figuring out how your situation will affect you contributing and accessing your pension moving forward.
- Getting a Divorce
Divorce can be financially exorbitant and stressful on all parties involved. In most cases, your pension should be included in any financial settlement, but luckily, there is lots of flexibility in terms of how it’s shared out. You typically have choices such as offsetting the value of your pensions against other assets or pension sharing.
- Unexpected Illness
Falling ill can happen unexpectedly or be a result of a worsening condition. Either way, it can be a difficult thing to deal with both emotionally and financially. Many people want to access their pension funds, especially in the case that they’re seriously ill. However, the general rule is that you aren’t allowed to access your pensions until you’re at least 55. When you’re sick, there could be an exception which enables you to access part if not all of your funds. It usually isn’t the case when it comes to State pensions though.
Ensure you’re following Portafina’s Facebook page, so you’re aware of any pension developments that arise.
- Moving Abroad
For many, it is a dream to move abroad and live in a different country once they leave formal employment and retire. It is, however, essential to know how that could affect the money you’ve been saving over the years. For one, it could mean that it’s harder to access. Also, you may not qualify for tax breaks, so speak to your pension provider to see what the case is for you.
Passing away is a reality that everyone has to face. However, you can better prepare for it by being sure that your money is going to places that you choose once you’re gone. Whether that is to family, friends, or charity, know what the rules and regulation are for your provider.
For those with any questions or who would like to find out more, you can visit Portafina Discovery a handy resource hub. They also have lots of vital information on their social channels, YouTube, @Portafina UK on Twitter, and on LinkedIn.