The Importance of a Pension Healthcheck

Retirement might feel like it’s years away—until it’s just around the corner. And when that time arrives, you want to be confident that you have the funds in place to live comfortably. But many people never stop to check whether their pension is truly on track. They make assumptions about its growth and contributions, but they rarely take a deep dive into its performance. That’s where a pension healthcheck comes in.

A pension healthcheck is a crucial step to ensure that you’re not leaving your retirement to chance. It allows you to review your pension’s performance, identify any shortfalls, and make informed decisions to get back on track. In this article, we’ll explain the importance of a pension healthcheck, how it works, and why it’s something you should prioritise.

Why You Need a Pension Healthcheck

The reality is that most people simply aren’t on track to retire comfortably. A report by the Pensions and Lifetime Savings Association found that many individuals are under-saving for retirement, and without a comprehensive review, these gaps can go unnoticed.

A pension healthcheck provides you with an honest, objective assessment of your current pension plan. It helps you determine if your savings are growing at the rate they should be and whether you’re contributing enough to meet your future needs. Think of it as a financial check-up, where you’re given the facts so you can take action.

What Does a Pension Healthcheck Involve?

At Kingswood Law, our pension healthcheck service is designed to provide you with a detailed, clear view of where you stand with your retirement planning. Here’s what’s involved:

1. Review of Pension Contributions

The first step is assessing how much you’re contributing to your pension. Are your contributions in line with your desired retirement income? Are you taking full advantage of employer contributions or tax relief?

2. Evaluating Pension Performance

How has your pension been performing? This involves assessing the performance of the funds your pension is invested in. A pension healthcheck will help you see if the investments are growing as expected and whether any adjustments need to be made.

3. Projecting Your Future Retirement Income

One of the most important aspects of a pension healthcheck is to project what your pension will provide when you retire. Will it be enough to support the lifestyle you want? We’ll help you project your pension income based on your current contributions, investment performance, and retirement age.

4. Identifying Gaps and Shortfalls

Many people don’t realise they’re on track to fall short of their retirement goals. Our healthcheck will help you identify any gaps in your pension and recommend actions to close those gaps.

5. Making Recommendations for Improvement

Once we’ve reviewed your pension, we’ll make recommendations to help improve your retirement outlook. Whether it’s increasing your contributions, adjusting your investment strategy, or changing your retirement plans, we’ll work with you to create a strategy that puts you in a better position.

Why You Should Get a Pension Healthcheck Now

It’s easy to ignore your pension or assume everything is fine, but that can be a costly mistake. Timing matters when it comes to retirement planning. The earlier you start addressing any issues with your pension, the more time you have to make adjustments and get back on track.

At Kingswood Law, we understand that retirement planning can be overwhelming. But it doesn’t have to be. With a pension healthcheck, you can gain a sense of control and certainty about your future. A healthcheck provides you with the insights you need to make smart, informed decisions about your retirement planning.