When life happens, people don’t think about how it could impact their pension. However, life-changing events could have a significant impact on your pot of savings. As these are funds that are going to support you after retirement, it’s certainly something to be concerned about!

The experts at Portafina, however, have provided useful tips on possible life-changing events and how it might impact your pension.

Passing Away

If there is one thing guaranteed in life, it’s death. Of course, this isn’t something many of us likes to think about, but what happens to your pension when you die? It is heavily dependent on what policy you have, so it’s crucial that you get as much information from your provider as you can. You may be able to pass the money down to your family, friends or causes that you’re passionate about, or this option may be restricted. You need to find out what restrictions there may be, so you know how to plan your financial future and the financial future of your family.


Another thing that could affect your pension positively or negatively is bankruptcy. If this ever happens to you, you might worry about how this could affect the money that you’ve worked so hard to save. It might be reassuring to know that your pension isn’t classed as an asset. If you are declared bankrupt, this portion of your money can’t be seized. However, you should note that declaring bankruptcy could change how you can pay into, as well as access, your pension funds. Speaking to your pension provider should give you the clarity you need to make the best decisions in such circumstances.  

Moving After Retirement

Everyone has different plans after retirement. While some hope to reside in their hometown and spend more time giving back to their loved ones and communities, others decide to move abroad. If you fall into the latter, it could impact your pension. For one, it could make it more difficult to access your pot of savings. Secondly, it could mean that you don’t qualify for tax relief and much of your money ends up going to paying taxes.

Starting a New Job

It is very unlikely that throughout your whole working life, you’re going to stay in the same job. For this reason, you should be aware of what that means for your pension. If your new job is paying you over £10,000, you should be enrolled in a new pension scheme. In some instances, you can transfer into this new scheme if it makes financial sense. The terms of your new and existing workplace schemes should tell you whether that’s the best move to make or not. You can keep up to date on any new pension developments on Portafina’s Facebook page.

Falling Ill

No matter how healthy you attempt to be, you cannot always predict what direction your health will go in. However, if your health does fail, you may need access to your pension as a result. Most of the time, you can’t access pension savings until you’re at least 55 years old, especially when it comes to State pensions. However, if you’re seriously ill, some providers will permit you to access some of the funds before the set age.

If you have any questions or would like to find out more, you can visit Portafina Discovery a handy resource hub. They also have lots of information on their social channels, YouTube and @Portafina UK on Twitter and LinkedIn.