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Pensions: How Major Life Events Can Affect Yours

Life is full of unexpected twists and turns, and while this can make life wonderful, it can also cause havoc and stress. This is especially true when it comes to pensions.

Unexpected major life events can impact your pension scheme in many ways people are unaware of; it is, therefore, vital that you know your rights.

Companies such as Portafina have compiled a list of pension relevant guides on how your pension might be affected by major events in your life, and they could be the key to ensuring that you get the money that you're entitled to, when you need it. Below are common, major life events that may affect your pension.

  • Death: While it's rarely pleasant to contemplate what will happen to your estate when you die, your pension is obviously going to be affected. If you're hoping to leave your pension savings to family, a charity, or close friends, then you need to check that this is an option on your pension plan. There are restrictions, and you will avoid complications if you make clarifications now.
  • Emigration: With so many Britons choosing to spend their retirement somewhere else, you might think that your pension is going to be largely unaffected. It's important that you clarify this, as there may be issues that you have to deal with. If you currently qualify for tax relief, you may lose that if you move to another country, and you may have problems accessing your pension, too.
  • Redundancy: If you have a workplace pension but you have been hit with redundancy, the presumption is that the pension payments that you and your employer have made are lost forever. This could be a massive mistake, as those payments are still yours. You could even carry on paying into them, although you won't be getting your employer contributions included. Check with your workplace pension provider, and you may be able to transfer your payments and savings to another pension plan.
  • Bankruptcy: Your pension savings are not considered to be a seizable asset if you file for bankruptcy. This can be a great source of relief for those worried about their future. However, there will be limitations placed on how much you can continue to pay into your pension, and the circumstances will change when it comes to retirement and accessing those savings. It's important that you know where you stand if you become bankrupt, so keep an eye on Portafina's Facebook page for regular updates.
  • Divorce: Rarely a pleasant life-changing experience, divorces can be messy and emotionally draining. Your pension savings will be factored in if you are going through a divorce, and they will be included in instances where a settlement is required. There is some flexibility when it comes to the sharing out of a pension, so it's wise to check with your provider before it becomes an issue.
  • Illness: Private pensions may allow you to access your pension savings if you become seriously ill before you hit retirement age. It's vital that you are aware of the fact that this is not an option with the state pension. That will only be accessible when you reach retirement age, no matter how ill you might be.

If you're worried about your pension or confused by how changes in your life will affect your retirement then contact Portafina through their website or social media pages. They can be found easily on LinkedIn, YouTube, and Instagram and can quickly answer any questions that you have, and ease your concerns.

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