The Best Advice for Your Pension and Financial Situation

Authored by Mike Page
Posted: Thursday, July 4, 2019 - 08:25

Many people need advice when it comes to their pension, whether this is in terms of the best ways to save, what type of pension to take out, or what to do in certain financial situations. If you are looking for advice related to your retirement fund, this article will cover some of the most common situations that individuals come to seek help for and the best advice that financial advisors can give.

If you want to speak to a financial advisor in person, you should seek a reputable pension advisory service. Portafina specialise in offering pension advice, find out more about them here.

• Redundancy and Your Pension

Redundancy can have an enormous impact on your life and that of your family, and many individuals choose to seek out a financial advisor to help them to work out the best option for their pension while they are out of employment. Redundancy frees up your pension pot to many possible solutions, and many financial advisors will tell you that you can either continue to pay into your pension or transfer your pension to a different scheme, such as one run by a private company. However, there are more direct solutions when it comes to sorting out your pension in terms of your redundancy pay. You can use your redundancy pay to put towards your retirement fund if you believe that this is a financially beneficial option, or your employer can use this towards your pension as the last employer contribution.

• Effect of Working Part Time

Working part-time should not put you in a position where you need to seek financial advice. However, many individuals do seek financial help due to what they perceive as a significant change in their working life. However, working part-time does not change the status of your pension, and you can continue to pay into this as much as you can or want. Your employer must offer you an opt-out pension scheme regardless of the hours that you work, and you may want to boost this by adding voluntary contributions as long as this does not extend past your annual allowance. This ensures that even those who work part-time can receive the full benefits of a working pension and a state pension if they have worked for over 35 years and contributed towards National Insurance.

• Impact of a Bankruptcy

If you have experienced bankruptcy, you know how stressful the time and experience can be. However, there are ways to ensure that bankruptcy has as little impact on your financial future as possible, and some of these include your pension. Although you should always seek financial advice if you have been made bankrupt, there is some crucial information that you should know.

  • Before May 29th, 2000, bankruptees had to appoint a Trustee of Bankruptcy who would be given their assets to pay off creditors by the government. These include your pension.
  • After May 29th, 2000, the Trustee of Bankruptcy can protect your pension against claims made against it, although they can recover elements of the pot if an excessive amount was paid in under unusual circumstances such as a relatively high amount.

Visit Portafina’s financial advisory service’s social media accounts on Facebook, LinkedIn, YouTube and Twitter to get more information on your pension and how to seek advice on an individual basis.

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