One thing that most entrepreneurs don’t have which people who are formally employed do is a workplace pension. This typically means that they’re responsible for contributing to their pension pot on their own and won’t have the support of an employer. In light of this, it’s crucial that you’re aware of how different life events could affect your pension.
The pension experts at Portafina have compiled different life scenarios and information on how they could help or hurt your pension. Read on to find out more.
Bankruptcy
One of the things that no entrepreneur hopes to experience is having to declare bankruptcy. Nevertheless, business doesn’t always go well, and you may face such a reality. If this challenging situation ever happens to you, it’s imperative that you know all is not lost. In this situation, the silver lining is that your pension isn’t classed as an asset, so the receiver can’t take this portion of your money.
However, going bankrupt can affect how you access as well as contribute to your pension fund moving forward. You need to speak to your provider and find out what the fine print says and the best decisions to make moving forward.
Death
Passing away is a life event that you have no control over, and it could happen at any time. To make sure those around you are left in the best circumstances possible, you should find out what the terms of your policy are in the instance that you die. Inquire about how you can have your funds transferred to family, friends or a charity of your choice. By doing so, you will have peace of mind that when you die, your money goes to those you choose.
Divorce
People get married hoping things will last forever, but this doesn’t always happen to be the case. What then do you do when you’re in a situation where you’re getting a divorce, and you’re worried that your pension is at risk? You can rest assured, however. There are ways to protect your pension such as pension sharing. You could also decide to opt for pension offsetting which is where the value of the pension is offset against other assets.
Moving Abroad
If you see yourself moving abroad after retirement, it’s crucial that you think about how that could affect the pension you’ve been contributing to over the years. This is primarily because you’ll likely have less access to it than if you were still living in the country. Also, before moving, check to make sure that you’d still be eligible for tax relief so that you don’t end up giving away chunks of your hard-earned money to taxes. You should follow Portafina’s Facebook page if you want to keep up to date with new pension developments that could affect you.
Illness
Falling ill is another life event that could impact your pension. During this time, you may be most vulnerable and need financial support, especially if you’re facing a terminal illness. If you fall ill, especially in your senior years, you might find that you need to move into a facility similar to Chelsea Senior Living, which may have an impact upon your retirement savings due to costs. For reasons such as this, you may want to consider finding out more about how the cost and available funding for these assisted living facilities.
The above life events can happen at any time, to any one. If you have any questions or would like to find out more, you can visit Portafina Discovery a handy resource hub. They also have lots of information on their social channels, YouTube, @Portafina UK on Twitter, and LinkedIn.
