Job Mobility and Your Pension
Mobility of labour is very much a part of current employment trends which in many eyes is a good thing for all parties involved. The days of staying with the one employer to retirement are long gone. Of course this means that many of us have experienced a variety of jobs and we may end up with more than one pension pot – in a multiplicity of places and you could be losing out on tens of thousands – perhaps hundreds of thousands – of euro by forgetting about or failing to track down a pension taken out in your early years.
Many of us are losing out on pensions taken out in our earlier careers – particularly if we have worked overseas or have moved jobs a number of times. It is well worth chasing up any pension pots from previous jobs. Full Circle Financial Services Limited can assist you with this.
As an example, let’s say you’re a 42-year- old who is changing job and you have built up a pension fund worth € 10,000 with the employer you are leaving. This fund could be worth about € 19,000 by the time you retire – assuming you retire at 65 (and have secured an annualised return of 5% p.a.). If you had two or three events such as this the sum total of these pots represent a not inconsiderable amounts of money at your retirement.
Keeping Your Records in Order
To prevent yourself running into difficulties tracing a pension you took out in your early career, keep a record of the name of the administrator for each of the pension schemes you have paid into, as well as he administrator contact details and update that record should there be a change of administrator.
Especially important is to be sure to inform the administrators if you change your address – so when you do retire they can write to you and tell you the good news. Indeed many schemes are subject to changes – between the date you left and the date you retire – so it is KEY that you are made aware of any such changes – including the option to take an Enhanced Transfer Value (ETV) which allows you to take your monies out of the scheme prior to the scheme retirement date.
Hold onto any important pension documents you receive while in a job, including your annual benefit statements (annual updates on the value of your pension). This will make it easier for you to trace the pension in the future – and to prove you have an entitlement to a pension. (There are some cases where pensions have been lost because records were destroyed after a change of pension administrator).
One thing that you MUST remember is that it can be particularly hard to trace a pension if you have moved abroad since taking one out, if the employer who provided that pension itself has changed its name.
Should you hit a brick wall when tracing a pension, contact the Pensions Authority as it keeps a register of company pension schemes. Another useful way to track a pension is to ask previous colleagues who also worked with the employer.
….OR contact Full Circle Financial Services Limited and we can assist you – at zero charge to you….
Use Your Own Financial Adviser
Remember, the money in a pension is held in trust for your benefit. In other words, it is still your money and still there – so don’t give up on it. Would you give up a bank account with € 19,000 cash – of course not!
Gathering and finding those pension pots could make all the difference between a cash-strapped retirement and a comfortable one. Our job is to review what you have and what it might mean at your retirement. We can give you considerable advice in terms of the value of your existing plans / the options you enjoy at retirement….
Remember if we can gather all your pensions and give you regular reports this will make it much easier for you to keep tabs on what you have – because all the information will be accessible in one place.
Feel free to send me an email (firstname.lastname@example.org) or get in touch on 087 6111 400.