Do you have an old pension plan gathering dust? Wondering what you should do with it? Well you are not alone.
There are hundreds of thousands of 'paid up' pension plans sat at the bottom of drawers and wardrobes across the country. Unfortunately many of these frozen plans tend to have a very poor investment performance record, coupled with high charges that are deducted from the fund.
So what should you do? Well the most important thing is to get it reviewed by a qualified pension adviser and if necessary, transfer it to a better performing plan.
If you use cars as an analogy; you wouldn’t buy a car in 1992, not service it, put no petrol in, leave it around to rust and then expect to jump into it on your 65th birthday and take it for a spin!
Pensions are no different, what was a good pension in 1985 or 1995 may be a very poor pension now. What was a good insurance company then, may not even exist anymore. What was a low charging plan may be very expensive by today's standards.
For all these reasons you should regularly review your pension plans in the same way that you probably review your home or car insurance or mortgage.