Top tips for your pension

It’s all too easy to start a pension and then forget about it until it comes to retirement. But following some of our simple tips can make a big difference to the benefits you could enjoy in later life.



It’s never too early or too late to start

Retirement might seem like a lifetime away, but it will benefit you in the long run to save now and spend later.

If you’re young, and at the beginning of your career, you have many years ahead of you during which the money you save can grow through investments. If you’re older and think it’s too late, it’s good to know that you will also benefit from the tax-relief on your contributions and investment growth.



The truth is that it’s never too late or too early to start saving into a pension.

Do some sums

It’s easy to get side tracked into thinking pensions are difficult and so put off making important decisions about your future. However, when you start looking into joining a pension, most people are pleasantly surprised. And the sooner you can start saving into a pension the longer your savings have to grow. This is important when you work out how much money you are likely to need when you retire.

Do you own your own home and still have a mortgage or do you rent and need to make sure you have enough money each month to pay your bills? Once you have worked out your expenses, consider how much of these will be covered by any State Pension entitlement you may have.

What you have left (plus or minus) will need to be covered by any other sources of income you receive. This could be savings or additional incomes, for example rent from property you might own.

The difference between the above is what you’ll need to save for. And a pension is a good way of saving money to provide this income.



Check your annual benefit statement

It’s always good to keep track of how your pension is doing – and it’s easy too. Your pension scheme will provide you with an annual benefit statement showing what you are entitled to, based on your contributions to date.

This will help you decide whether you are happy with how your pension is doing, or whether you need to take action, such as review your investment options, contribute more, or set up an additional pension. Most people only look at their pension shortly before they plan to retire, by which time it is often too late to take action.


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