Is your pension safe?
You can be forgiven for worrying about the safety of your pension – you’ve spent a lifetime paying into it and want to be reassured it’s going to be there for you when you need it the most.
Cold calling sharks
The collapse of big companies with huge pension schemes has become a magnet for opportunistic cold callers. The Pensions and Lifetime Savings Association recently found that one in six pension holders have been contacted by a company other than their own provider to transfer or change their pension. These are often scams!
So what are the risks of moving your pension?
It’s down to your experience as an investor to ensure the important financial decisions you make are the right ones, and this can only be achieved by dedicating time and effort to regularly monitoring your investments.
Pensions to avoid
Self-invested personal pensions, or SIPPs are a higher-risk investment option when it comes to saving for retirement. As such, the main protection when investing in a SIPP is you.
Ensure any company or individual you speak to regarding your pension and investments is a certified professional able to provide sound financial advice based on their experience and knowledge of the market.
There have been notable, high profile cases involving SIPPs. Over 3,000 people invested in Ethical Forestry Ltd, much of that coming from self-invested personal pensions. However, in 2015, the business – which invested in Costa Rican plantations – went into liquidation, with people facing the prospect that they may never see their money, or pension pot again.