Pensions - Don't bury your head in the sand

If you are over 50 you have reached that magical age when you can legally start to receive benefits from your accumulated pensions, even if you continue to work full or part time, as long as your scheme provider allows. You can of course choose to leave your pensions invested until you are 75 but, if you do aspire to take a more laid back approach to your working life, you need to have prepared and saved well to be able to afford it. Don't kid yourself otherwise.

Changes to pension legislation in April 2006 have given everyone from cradle to grave an enormous boost to pension opportunities. Everyone has greater flexibility and choice whilst saving and when taking benefits. Contributions attract tax relief at your highest rate of tax and can be made as regular or single contributions at much higher levels than previously. So, if you need to boost your pension pot and get substantial tax relief to enhance your fund it can now be done to good effect much later in life, often within months of retirement. It's never too late but to maximise your opportunities you need to take control of the situation.

For many people pensions seem such a complicated subject that they choose to bury their head in the sand and hope what they have will be OK rather than grasp the nettle and seek qualified advice to check it or them out. Many pensions have fallen well short of expectation because of high charges and or poor investment performance. Yours is more likely to be one of these than not. You should find out if it is as soon as possible.

It's a bit like having a car. Are you happy with the one you have? Is it a reliable, stylish good performer returning good fuel consumption? Do you need all of those seats and gadgets or do you fancy something a bit more basic or sporty but with a bigger engine? Is it a Bentley or a banger or something in between? What if it fails its MOT? Could be you don't drive or just plan to use public transport. You could always get a lift from a friend but do you really want to rely on others every time it rains?

Unfortunately, whilst not having your ideal transport solution might only ruin your day, not selecting the right pension investments or pension income options might ruin your retirement plans and lifestyle.

There are plenty of qualified Independent Financial Advisers, some specialists, who will happily help you review your existing pensions and or retirement options to ensure what you have or plan to take is best suited for your personal needs, circumstances and aspirations.

When was the last time your pensions had an MOT?