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Time To Upgrade Your Toaster!

It’s where most people file their pension statements! You know, they drop through the door in their A4 envelope, you half open it, see the insurance logo, roll your eyeballs back, file it behind the toaster convincing yourself you’ll look at it another day. Yeah, yeah!

Strangely, as you sneak into your forties, you might even take it out of the envelope. Into your fifties, you turn a few pages to try and make some sort of sense of it. You notice the pension it’s quoting you at 65 and then wondered why you bothered in the first place and stick it back behind the toaster again!

Take it from me, the pension statements for those with a moderate IQ are difficult to comprehend with figures based upon regulatory requirements and can be very confusing particularly in relation to at least the annual pension at retirement they quote. Pension providers haven’t caught up yet and still quote an escalating annuity that only a tiny percentage of the population is likely to buy.

It’s since George Osborne, the ex-Chancellor of the day, said, “You no longer have to buy an annuity.” And guess what, few are!! In our opinion the key figure to focus on that’s of any real consequence on your statement is the fund value, but you’ve got to understand that the fund value is only the start of this enlightenment process. So, upgrade your toaster to a decent filing system and then go and see someone who can make sense of all the pension statements you have. 

Oh, and shake off the toast crumbs before you come and see us!

By Simon Boardman - Employee Benefits Consultant.


This information is intended to provide a general review of certain topics and its purpose is to inform but not to recommend or support any specific investment or course of action. The tips may not apply, or be suitable, to everyone and you should contact us for advice if you are unsure whether this is the case.

Ethos Financial Solutions Ltd are authorised and regulated by the Financial Conduct Authority.

Publish date: 11th October 2017

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