We often talk to pension members that have multiple pensions with multiple providers due to working for various employers throughout their career, and the same question is always asked – Should I consolidate all my pensions together or diversify between providers?
Firstly, diversifying is important however when it comes to pension plans you run the risk of paying multiple pension administration fees, so sometimes consolidating make sense, especially because you only have one retirement so why have more than one account?
At Freisenbruch we can help bring all the pieces together and more importantly start planning your retirement together.
Where do you start?
Step One – Find out what you have and where it is
List all the places you have worked in your career, starting with the most recent and work your way back. You can then determine whether you have a statement for that pension. Now it is important to remember that the Pension Act came into effect Jan 1st, 2000 so in reality if you worked prior to the year 2000 you may not have a pension until after the Act came into effect. However, it is worth checking as various employers on island still provided a pension to employees.
Step Two – Are you happy with your current provider?
If you are currently working, then chances are you are currently contributing to a pension plan through your employer – the question is are you happy with them?
If yes, then it might be worth speaking with your company’s pension plan provider and rolling over your previous pensions to your company pension plan. Do not worry it will still be allocated under your name and it is still your money, it is just under one roof now.
However, if you are not happy with your company’s pension provider than seek to find another provider that can open an individual pension plan. Once you make the decision and open an account you can then rollover all the existing pension plans into that individual plan and manage it separately from your company plan. The good news is when you decide to leave your existing employer you can then allocated the funds you have accumulated during your employment to this plan as well – purpose served!
Step Three – Performance monitoring
Now that everything is possibly under one or two roofs, you can start to really monitor the performance of your pension, namely determining exactly what you are making off your hard-earned retirement savings. This will allow you to determine whether changes need to be made based upon your appetite to take risk versus the potential and factor in your time horizon retirement to achieve your retirement objectives.
For more information please contact Freisenbruch Insurance Services Ltd at 296-3600 and ask for Danielle Pacheco, Pension Sales Advisor or email her at dpacheco@fmgroup.bm