Alesha's Finance Advice

Considering the global financial services meltdown and everything else that has been taking place. Individuals have started to sit up and take much more notice of how their pension performance is working out. Rightly so in the end it is their money and their future that may be at risk. At present there is nothing to suggest that pensions are at any greater risk. However any concerns should be discussed together with your financial advisor

Exactly what is a pension plan?

It is an investment in to your future retirement and if you decide to take one out then you will need to ensure that you not only find the right one to suit your needs and your family. When making this choice you want to besatisfied that you are being given the right information to make an informed decision. It is not advisable to setup a pension plan with the first person you speak to, it would be like many things be better to shop around a little first and compare what they have to offer.

What is pension performance?

Pension Performance is how well your investments are doing. This will tell you if your retirement goals are on target or whether you may need to start paying in more on a monthly basis to give your pension a boost. Previously people haven’t been too concerned over pension performance. What we have experienced happen to the economy lately has led to an increased feeling of uncertainty and more people seeking peace of mind with regard their pension performance.

What is a pension calculator useful for?

A Pension Calculator is a way that a financial or pension advisor can figure out and show you what kind of gain on your money your pension might give. When several different factors are considered for example interest rates or the stock exchange over a period of years, a pension calculator can assist with a guide to the outcome of your investment funds . The results from a pension calculator should not be seen as accurate and are generally there as only a guide as no one knows what the future holds.

Is it possible to cash in my pension early?

With some pension plans you may be able to cash you pension early yes. Although this will normally come with a penalty. This is because the pension provider may be penalised for withdrawing funds from investments made for your benefit. Some people are unhappy about this because they consider it is their money , but the pension company will have tied the money into various investments in view to making a gain. Additional time and resources will be required, and the company will not have neecessarily anticipated this.

Can I calculate my final pension?

There isn’t a accurate way that you can calculate your final pension performance. A pension calculator can provide an estimate, but this is not an assurance of your return .