Five key pension considerations

Five key pension considerations by Michael Cheary Ever heard the phrase ‘poor planning leads to poor performance?’ Well, when it comes to your pension, it rings true…The results of a recent study carried out by Prudential suggested that 32% of retirees are living less comfortably now than when they were working. And with more than two in five also stating that they regret some of their retirement planning decisions1, giving some extra thought to your pension should never be underestimated.To help you get to grips with the facts, here are five key pension considerations you need to know before you start planning, courtesy of Prudential:1. New pension changesNew rules released in 2015 have completely changed how pensions work.There’s now far more choice over how, and when, you access the money you’ve put away. For example, instead of just being able to access 25% of your pension as soon as you retire (with the rest coming in the form of regular payments), you can now choose how much you want to take .After you choose the amount, you can then withdraw money as often as you want, continue with regular payments, or go for a combination of both options.You can also take from your pension as soon as you reach 55 â€" which might impact how much you want to put away.New pension rules: explained2. Growing your savingsRetirement isn’t just about putting money aside for later.Learning how to grow your savings will ensure you see a bigger return on your investment, and help you achieve the lifestyle you want later in life.And it isn’t just important in the run up to your retirement. Talking to an expert about where savings can be made could save you thousands in the long run. So the earlier you get your finances in check, the more comfortable you’ll be.3. Lower savings ratesThink sorting out your pension is the only way to save? Think again.With Bank and Building Society savings rates getting lower, making your investments through them might actually benefit you more than putting al l your money into a traditional pension scheme â€" not to mention making it easier to manage.So instead of leaving your savings to sort themselves out, or simply deciding to go with the crowd, always consider all available options before moving your money.4. ProtectionTo plan properly, you need to take the good with the bad.It’s all very well basing how much you need on your current living situation, but what if something happens that impacts the amount you can comfortably live on when you retire â€" or worse, the amount you can put away.Looking at ways to reduce the financial burden on your family in the event of an accident or serious illness is vital to ensure a bad situation doesn’t become even worse.It will also help guarantee your pension payments cover every eventuality.5. Estate PlanningOK, so you’ve covered your retirement. But what about your kids?Even if you’ve managed to save a substantial amount, Inheritance Tax rules could cripple your family after you’re gon e, and leave them facing substantial payments in order to access the full amount of your estate.Learning more about Inheritance Tax will help you cover everything you need to know when it comes to passing your money on.You’ll also be able to go through some key steps which could help reduce your bill.Looking for a role with a better pension? View all available jobs now