At the beginning of this calendar year, new regulations came into effect, making it easier to roll over retirement plans that fall under the category of provident fund. If you're considering such a transfer, comparing costs should be one of your first steps.
Key costs to check and compare between your existing product and the one you're considering include:
1. Management fees on contributions
2. Management fees on accumulated savings
Another aspect to examine is the financial performance of your current pension product versus the one you're considering. You can find this data on various websites. However, it's crucial to remember that high past returns don't necessarily predict future performance. In any case, you should review performance over a reasonable period to get a better picture and make an informed decision.
The service provided by the managing body is also worth comparing. Check how you can receive service: via the internet, phone, etc., and whether it's accessible, reliable, and user-friendly. Transferring from pension products no longer being marketed is possible, but remember that you can't return to these products. Moreover, these products might offer better conditions but at a higher cost.
Request a written proposal from the body you're considering, including both cost terms and coverage. If you decide to transfer, ensure you fill in all required details in the transfer document, choose an investment track, and verify that the transfer is completed.
Remember, if you're unhappy with your current pension provider, these new regulations make switching easier. However, always do your due diligence before making any changes to your retirement savings.
Note: This article is not a substitute for personalized pension advice.
