As we embrace a new year, it's an opportune moment for UK pensioners to reassess their pension strategies. As a financial expert with a deep understanding of the economic landscape, I advocate for self-education and self-management in pension planning. Here are ten resolutions to help you take charge of your pension this year:
1. Educate Yourself About Pension Management: Knowledge is power. Invest time in understanding the basics of pension funds and investment strategies. My books and software offer easy-to-understand insights and tools to help you make informed decisions. https://www.trading-champions.com/p/investing-champions
2. Review Your Pension Plan Fortnightly and Annually: Regularly assess your pension plan to ensure it aligns with your retirement goals. Adjust your contributions and investment choices as necessary. Fortnightly just in case anything is tanking. Not because you trade your investments.
3. Dont Over-Diversify Your Investments: Use tools and resources that I offer to understand how diversification works in practice.
4. Understand Pension Charges: Be aware of the fees and charges associated with your pension. Sometimes, these can erode your savings significantly over time. Remember your paying for your fund managers kids school fees. Ask your IFA which private school his kids go to and which car he drives.
5. Consider Delaying Your Pension Withdawls: If you can afford to, delaying your pension drawdowns. That can result in higher weekly payments later on.
6. Maximize Tax Efficiencies: Understand how to make the most of tax reliefs and allowances available to pensioners. This can significantly enhance your pension pot. ISA and SIPPs and how to open one and buy a share.
7. Challenge Your IFA's Strategy: If you have an Independent Financial Advisor (IFA), critically evaluate their advice. Remember, you have the ultimate say in your financial decisions. Ask them why they’ve not generated 45 percent like the Nasdaq. Here are their sackable responses “it’s just one year. You wouldn’t want those high growth risky companies like Microsoft. Yours is a safer underperforming low risk low return funds.”
8. Embrace Technology for Better Management: Utilize financial technology, like my investing software, to manage and monitor your pension more effectively.
9. Stay Informed About Regulatory Changes: Pension regulations can change. Stay updated with the latest changes to ensure your pension strategy remains compliant and efficient. Like the max you can put in your SIPP.
10. Build a Retirement Budget: Plan your spending in retirement. A well-structured budget helps you understand how far your pension needs to stretch. unbiased.co.uk has a good tool.
Alpesh B Patel