{"id":5069,"date":"2021-04-27T05:37:59","date_gmt":"2021-04-27T01:37:59","guid":{"rendered":"http:\/\/gccexchange.com\/blog\/?p=5069"},"modified":"2021-04-27T05:41:55","modified_gmt":"2021-04-27T01:41:55","slug":"how-to-avoid-the-pitfalls-when-shopping-for-a-pension","status":"publish","type":"post","link":"https:\/\/gccexchange.com\/blog\/how-to-avoid-the-pitfalls-when-shopping-for-a-pension\/","title":{"rendered":"How To Avoid The Pitfalls When Shopping For A Pension"},"content":{"rendered":"\n

Have you considered sorting out your pension yet? If not, why not?<\/strong><\/em><\/p>\n\n\n\n

Leaving It To\nThe Last Minute<\/h2>\n\n\n\n

So many people leave\nsorting out their pension plans until the last minute and are left bitterly\ndisappointed when they realize they will not have as much to live on as they\nthought they would.<\/p>\n\n\n\n

Do not be one of those\npeople, get it sorted now and enjoy the knowledge that you will have something\nto live on that fits your lifestyle and desires much better than what you may\nhave been offered on the state only.<\/p>\n\n\n\n

\"How<\/figure>\n\n\n\n

Avoid The\nPitfalls<\/h2>\n\n\n\n

Sadly, there are a lot of\nscams when it comes to pensions, and it is really worth being careful when\nplanning your investments. <\/p>\n\n\n\n

It is not just scams\neither, there are lots of pitfalls that are easy to fall into, here are four\nthat you should avoid for a healthy pension pot and future retirement.<\/p>\n\n\n\n

Not Exploring\nYour Options<\/h3>\n\n\n\n

You really must take\nfinancial advice when deciding on your pension investments and speak to a professional\nwho really understands the markets and what you could get for your money.<\/p>\n\n\n\n

There are lots of options on the market, and a financial advisor will be able to take you through things like your investment options, fixed annuity rates<\/a>, ISA accounts, or even releasing equity in your home.<\/p>\n\n\n\n

It is a big wide world of\npension investments, but you must choose wisely!<\/p>\n\n\n\n

Running Out Of\nYour Savings<\/h3>\n\n\n\n

How long are you planning\nto live for? Horrible question, right? It is one that you do need to ask\nyourself though.<\/p>\n\n\n\n

Not in the context of\nplanning for your death, but for planning the length of your retirement pot. Do\nnot under-plan for your life, or take money out too early leaving yourself in\nfinancial difficulties at a time in your life when you will be needing to\nconcentrate all of your efforts on your health and wellbeing.<\/p>\n\n\n\n

Considering\nThe Tax Payments<\/h3>\n\n\n\n

Did you know that the first\n25% of your lump sum withdrawal is tax-free? That sounds great, but that leaves\nthe other 75% of your lump sum that will be taxable.<\/p>\n\n\n\n

The fact that you need to pay tax on the remaining amount does not mean you should avoid taking out lump sums if that is something you want to do, but you should plan for the tax you will need to pay so as not to face a hefty tax bill that you were not expecting<\/a>!<\/p>\n\n\n\n

Multiple\nPensions<\/h3>\n\n\n\n

One of the best things to happen in the last few years is auto-enrolment for pensions<\/a>. This has meant that everyone who works a PAYE job will be saving for their pension by default, making the financial lives of the everyday worker much more secure in the future.<\/p>\n\n\n\n

The downside of this is\nthat it is easy to lose track of what pensions you have and what investments\nyou are part of. <\/p>\n\n\n\n

Keep track of everything\nand consider consolidating pensions if it is easier for you and your family,\nthat way you will not be missing out on the money that YOU have earned and that\nYOU deserve.<\/p>\n","protected":false},"excerpt":{"rendered":"

Have you considered sorting out your pension yet? If not, why not? Leaving It To The Last Minute So many<\/p>\n","protected":false},"author":1,"featured_media":5073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1493,16],"tags":[2416,2414,2417,2415],"class_list":["post-5069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-career-advice","category-investing-money","tag-fixed-annuity-rates","tag-pension","tag-pension-investments","tag-pension-processing"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t