June 18th, 2010
Mr D had 2 different pension plans with the same company and was contributing to one of the plans every month.
He contacted checkmypension.co.uk to find out what his plans were worth and what they were likely to pay him when he retires.
On his behalf Checkmypension.co.uk contacted Mr D’s current pension provider and found out his plans were valued at £113,384. These pension plans were projected to pay him a 25% tax free lump sum of £54,600 when he retired at age 65 as well as an annual retirement income of £9,510.
The Check my pension team carefully reviewed this information and then set about looking at what retirement income other pension providers could project .
Mr D opted to speak to a qualified financial adviser and It did not take long to find a better deal and Mr D’s projected tax free lump sum was increased to £78,600 as well as an annual retirement income of £13,460.
The reason for the difference is simple. The new pension provider charges less to manage and administer his pension so more of Mr D’s money is invested. This means the projected income when he retires is greater.