Pension Awareness Week is an important annual reminder of the significance of pension planning. However, surveys consistently show that a significant portion of us lack clear knowledge about our pension plans and how they work. Retirement might seem a long way away for some of us, but making good choices today can have a positive impact on our quality of life in the future, so it’s definitely worth the time to review how things are.
Top pension tips
1. Review your pension statements
Begin by carefully reviewing your pension statements. This will make sure you understand how much you’ve contributed over the years, how the investments have performed, and any fees associated with your pension plan or plans, which can help you make informed decisions about what’s next for your retirement savings.
2. Set clear retirement goals
What kind of retirement are you planning for? Whether it’s pursuing a new hobby or enjoying more time with your loved ones, setting clear retirement goals is essential to make sure you will have sufficient funds saved to enable you to do what you want to – there’s still time to adjust what you’re saving, if necessary.
3. Maximise your contributions
If you can afford it, consider increasing your pension contributions. Many employers offer pension matching schemes, where they match what you contribute to your pension pot. This can supercharge your retirement savings.
4. Don’t put all your pension nest eggs in one basket
By diversifying – spreading pension investments across several different investment types – you reduce risk and potentially maximise gains. To do this, you could work with a financial advisor who can help ensure your pension investments are spread across a range of assets to protect your nest egg from market fluctuations or check out MoneyHelper for more useful guides.
5. Stay informed
Pension regulations and pension options can change over time. Stay informed about any updates that may affect your pension, and regularly review your plan to ensure it continues to work as hard as it can to help you fulfil your retirement goals.
The Printing Charity’s free, confidential employee helpline includes access to information and advice specialists who can provide support on pension-related queries. Those aged 50+ can also visit the Moneyhelper website to book a free, impartial appointment with a pensions specialist.