Listen to Simon Cosgrove as he explains key considerations for personal pensions, their performance and when it might be time to switch providers in the latest Wesleyan Podcast.
When you decide to partially or fully convert to private practice, one key element of your personal finances that needs attention sooner rather than later is replacing your NHS pension.
Pensions are an incredibly tax-efficient way of saving for the long term . There is a cost that comes with delaying pension contributions. You can miss out on annual tax allowances or compound interest to help your pension grow.
A popular way many dentists may replace their NHS pension scheme is to start a personal pension.
With a personal pension, you pay a regular monthly amount or lump sum to a pension provider. The provider then invests it on your behalf. This means that your pension is subject to investment performance, which is never guaranteed. You may get back less than you invest.
It’s important to regularly review your personal pension for this reason. Ensure that it’s invested in a fund that’s performing well, doesn’t have extortionate fees, and is in line with your attitude to risk.
Reviewing your personal pension with a financial adviser helps you to ensure it’s right for your objectives and performing well. It also helps you find out whether you may be better off switching your pension to another provider.
Please note: tax treatment depends on individual circumstances and may be subject to change in future.
If you’d like to give your personal pension a health check, you can book a no-obligation financial review with a dental specialist financial adviser by visiting wesleyan.co.uk/lifes-journey or calling 0800 316 3784.
