A Time to Spring Clean

Spring Cleaning Your Finances: Reviewing Your Benefit Statement and Pension

Spring is a time of renewal—a fresh start. Just as we declutter our homes and tidy up our gardens, it’s also an ideal time to get our finances in order. One key area often overlooked is our pension. Reviewing your Benefit Statement and ensuring your pension is on track can make a big difference in securing your financial future. Here’s how you can take advantage of the season to clean up your retirement planning.

• Understand Exactly How Your Pension Is Invested

A clear understanding of where your pension is invested is crucial. Investment markets fluctuate, and your asset allocation may have shifted without you realising it. Just like risk drift can occur in a cluttered home—where items pile up without notice—your pension investments may have veered from your intended risk level.

• • Do you know how much of your pension is allocated to equities, bonds, or alternative investments?
  • Are you comfortable with the level of risk you are taking?
  • If you’re nearing retirement, is your pension appropriately positioned for a smooth transition?

Many pension holders remain unaware of how much risk they are exposed to, particularly if they are part of a lifestyle fund that automatically shifts towards bonds as retirement nears. With inflation and interest rates affecting bond markets, reviewing your exposure is critical.

Action: Ask your adviser to help you gather all the necessary information for a full pension review.

• Know How Much Savings You Need to Achieve Your Target.

Just as spring cleaning forces you to re-evaluate what’s essential, reviewing your Benefit Statement helps you determine if you’re on track for the retirement lifestyle you envision. To assess your progress, consider:

• • What are the expected returns on your pension investments?
  • Should you contribute more through Additional Voluntary Contributions (AVCs)?
  • How do tax benefits impact your savings strategy?

A robust financial plan will consider these factors and provide clarity on how much you need to save. Life circumstances change, and so should your pension strategy. Ask yourself:

• • Will you retire at 60 or 65?
  • Do you plan to fully retire or continue part-time work?
  • How will increasing your savings today impact your future pension income?

Contributing additional funds to your pension can be a highly tax-efficient way to save. Contributions based on 2024 earnings can be made up until 31st October 2025 (or 12th November if filing online), allowing you to maximise tax relief while bolstering your retirement savings.

Action: Speak to your adviser about developing a personalised Financial Plan to keep your pension on track.

• Get Your Spouse Involved in Retirement Planning

Spring cleaning is always easier when done together, and the same applies to financial planning. If you share financial responsibilities with a spouse or partner, ensuring they are informed about your pension and investment strategies is essential.

With many defined benefit schemes closing and annuities becoming less attractive, most retirees now rely on Approved Retirement Funds (ARFs) to manage their income in retirement. If something happens to you, would your spouse know how to manage your pension and investments?

To avoid financial stress down the line, include your spouse in pension planning discussions and meetings with your financial adviser. Doing so ensures they understand your retirement strategy and are comfortable making decisions if needed.

Action: Schedule a financial review that includes both you and your spouse to align your retirement strategies.

• Make the Most of It

Spring cleaning isn’t just about tidying up—it’s about making your home a better place to live. Similarly, reviewing your Benefit Statement and pension isn’t just about checking numbers; it’s about making sure you can enjoy your future retirement with peace of mind.

Taking the time now to assess your pension investments, savings goals, and retirement plans can remove financial uncertainty and help you move forward with confidence.

Action: Work with a financial adviser to fine-tune your retirement strategy and ensure you’re making the most of your pension savings.

Planning for Today, Tomorrow and the Unexpected

At Lynx Financial Services, we believe financial planning shouldn’t be complicated or overwhelming. That’s why we take a personalised, straightforward approach, helping you save for today, tomorrow, and the unexpected.

No jargon. No hidden fees. Just clear, honest advice tailored to your goals.

Whether you’re looking to grow your investments, plan for retirement, protect your family, or secure the right mortgage, our expert advisors are here to guide you every step of the way.

Your financial security is our priority, and as a member of Brokers Ireland, regulated by the Central Bank of Ireland, you can trust that you’re in safe hands.
Wherever you are in life, whatever your financial goals – we’re here to help. Get in touch for a no-obligation chat.