FINANCE

TWENTY BILLION UNCLAIMED PENSION FUND MONEY

The lost pension mountain as it’s being called was revealed by the Association of British Insurers (ABI). Apparently they’ve calculated that there are up to 1.6Million unclaimed pension pots worth an average value of £13,000. As people change jobs and move home so many times in their career it has become increasingly more difficult for pension providers to reunite people with their pensions. To further compound this pension holders are finding it difficult to locate their respective company’s due to mergers or closures & takeovers etc that it has become a minefield, which almost needs a forensic accountant to locate the funds. Take this example; we had a client with a £50,000 pension pot with Provident Mutual who were taken over by General Accident then the company was dissolved only to reappear with Friends Provident which is now Aviva but were previously called Norwich Union, it took months to find the money and many people would have given up looking. Fortunately the government is stepping up its help to assist with the process of reuniting people with their pensions and there is a website where you can start the process at www.gov.uk/findpension-contact-details. Alternatively you can try The Pension Tracing Service or former employers if they haven’t been taken over and absorbed into other companies and their pension schemes. When you’ve finally traced your funds you will need advice on how to access the money tax efficiently or merge with other pension pots you may have so you can manage the money more cost effectively. It may be a defined benefit scheme or investment related all of which can be a minefield to understand so we invite you to contact us for a free consultation without obligation. If there are 1.6 million untraced pensions in the UK, then that makes 80,000 in Wales with 400 of those living in Porthcawl! It could be you!

PHILIP VAUGHAN Director at Abacus Assurance Financial Services Ltd Porthcawl 01656 772222

WE DID IT AGAIN…TWICE!

1. At the time of writing we have just placed a large mortgage case for Clients near Bridgend who had found themselves in something of a financial mess and well over-borrowed, despite excellent joint income. Although they had NO bad credit showing on their credit file at all, they had been through a difficult patch where a change of career meant that one of them had to take large cut in income to re-train for the change of job. They used their savings but then had to rely on credit cards and loans to get them through until the new job started, and a full salary restored, a good while later. Their current lender wouldn’t advance them the extra money to pay off the debts – over £80,000 – to make life easier, despite a now better joint income and prospects. We managed to place the case though with a lender that was prepared to talk the case through with us and helped slash their outgoings by over £1800 a month! Normality is back again. 2. An older retired couple looking to move almost saw their move to a bungalow scuppered when they lost their buyer a week or so before completion, leaving them short of funds for the move, despite having sold their property. They were distraught as the Estate Agent said they’d have to put the property back on the market, with bungalows being in huge demand for obvious reasons. The couple approached us via a friend’s recommendation and we got onto it immediately. Within a very short space of time we got a new deal agreed that same day, whereby they could raise the shortfall on the new property and the valuation was immediately instructed, so assuring the estate agent that this was a serious proposition. We had the offer for the new arrangement within a week and a delighted couple and an equally delighted agent were full of praise. As for us, well, it was all just in another day’s work and client satisfaction has been at the heart of everything we do for over 34 years. You should call us too – 01656 782545 or 07768 418308, even out of hours and at weekends.

PAUL FIELDING Dragon Financial 01656 782545 / 07768 418308

WHEN I’M 64

Over your career you may work for many different employers, and so may build a collection of different pension pots. At some point you may have to decide whether to consolidate them or leave them separate. Reasons to consider whether to combine your pensions may include: Saving money – each pension pot is managed separately, meaning each has its own annual management fees. Some of these fees may be higher than others, so a cost saving could be achieved. Better growth - Performance can also be an important factor. If you have several pots, it’s likely that one will have outperformed the others (although remember that past performance is not a guide to future performance). Look for consistency of performance over time. Convenience - Managing one pension pot is inevitably easier than several. However, this involves more than checking the balance yearly. You also want to ensure you are invested in the right fund for your risk profile, which may change as you near retirement. When you have multiple pensions from various providers, you run a higher risk of losing track of one or more of them altogether. House moves are notorious when it comes to paperwork getting lost – and if you lose the paperwork, you may forget you have the pension altogether! Consolidating your pensions before retirement can be a wise move. However, there are some circumstances in which it may not always be the best option, especially without taking advice first. As an Independent Financial Adviser, I can go through all your pension paperwork with you and liaise with your providers, to help you build up a picture of your current arrangements. I can then give you clear and unbiased recommendations, based on what you want from your retirement. There is no universal right answer when it comes to transferring pensions, which is why tailored advice is so important.

PHIL PROTHEROE Tavistock Partners [UK] Ltd 01656 771747/ 07859 129580