I loved a quote from an article in The Times today on the subject of pensions charges. I repeat it in full below;
“Thousands of workers in their 40s, 50s and 60s have one; a drawer or folder where they stash those strange sheets of paper that turn up each year from past employers telling them about their preserved pension pots.
“They are added to the wedge of incomprehensible paperwork that they for forlornly hope will give them a decent income in retirement” (Patrick Hosking)
For me that quote is a perfect summary of one of the key challenges with which consumers are faced.
Understanding what possible income you are going to receive in retirement from pension benefits accumulated in the past is vitally important if you want the answer to the question “When will I be able to afford to retire?”
Those people with a number of past pension arrangements are faced with the difficulty of trying to get a real understanding of how each of those plans is going to link up to generate the retirement income that they need.
It should go without saying really that getting an analysis and advice about these plans is a very sensible thing to do.
