Pensions - General Questions

[imoldernu]

No answers... just a checklist to cover most bases.


What fees are being charged? From the pension provider, fund managers, or financial adviser.

What life changes affect pension arrangements? Change in marital status - death benefits.

How are the assets invested?

Independent or Company Pension?

Company bankruptcy rules?

Understand the limits of the PBGC (Pension Benefit Guarantee Corporation)

Assumed investment returns?

Stop, increase or decrease contributions?

Does pension have safeguarded benefits?

Calculations involve spouse?

How are investments performing?

Death in service or disability benefits?

Are guaranteed annuity rates attached or life cover.

Retail Distribution Review (RDR), what are the charges?

Costs to transfer pension?

Is fund being managed actively or passively?

Choose a Guaranteed Annuity Rate if available?

Single or joint annuity?

Will claiming pension affect State Benefits or State Pension?

Know withdrawal options?

Tax free amount for full withdrawal? 25% withdrawal?

Public or private advisor?

Measured your life value against leaving money on the table?

Know total pension funded percent?

Considered negotiating an annuity based on health?

Considered what government changes could be imposed?

Know PBGC dollar guarantees?

Considered combining multiple pension pots?
.........................................................

Interesting blog about pension management:
Pension Pulse: 300 Tough Questions To Ask Your Pension Fund Managers and Trustees

 

[Big_Hitter]

do you want me to answer all those or tell you where to find the answers?

 

[imoldernu]

From Here:
https://www.tiaainstitute.org/public/pdf/institute/research/dialogue/71.pdf

What People Don’t Know About Their Pensions

The first two studies we discuss examine directly the question
of how well people understand their pensions. Our
findings suggest that many of those approaching retirement
age are poorly informed about their pensions. As can
be seen in Table 1, only half of HRS respondents with linked
pension data correctly identify their pension plan type (27%
+ 11% +11%), that is, whether their plans are defined benefit
or defined contribution. Table 2 indicates that fewer than
half of HRS respondents with defined benefit plans and
linked pension records can identify, within one year, their
date of eligibility for early retirement benefits. According to
the employer-provided data, two-thirds of respondents will
be able to retire early by the time they reach age 55 (138 +
168 + 36 + ...); but less than half of respondents think they
will be able to retire early by age 55. Those who are within
three years of retiring and who have the most incentive to
know the terms of their pensions, do report their eligibility
date for early retirement benefits somewhat more accurately
than the sample as a whole, but not by much.
Moreover, eighty percent of respondents with a defined
benefit plan do not know how much their pensions will be
reduced for early retirement, or do not think they will be
eligible for early retirement at all.

Obviously doesn't apply here...

 

[48Fire]

The only thing I know is that I have one, and I am grateful for that. A lot of luck, but finally a realization that I was close enough to keep grinding until ER. I don't spend anytime worrying about the rest.