Once you know where all your pension pots are and how to access them, you should consider reviewing your pension and long-term savings regularly. This could help make sure you’re on course to achieving the future lifestyle you’re looking for. Here are some things to think about.
1. Is your saving on track?
Are you saving enough to reach your retirement goals? And are your aspirations for the future still the same? You can try our Picture your best life tool to think about the life you want in the future.
Our Your Retirement Planner can also help you understand how much money you’ll need for life after work, and if you might need to save more.
2. Can you boost your pension savings more?
If you get a pay rise or a bonus you could consider using this to boost your pension savings. Also, check your monthly outgoings and budgeting is under control, with debts cleared where possible. If you can find small ways to cut back on your regular spending, such as stopping non-essential subscriptions, you could put the extra money you save into your pension.
Take a look at Pension Wise – a free, impartial service from the UK Government for more information on pensions and what you can do with your pension pots.
3. Look out for high charges
Beware of high fund management charges that could eat into the value of your pension – you don’t want any surprises when you come to take savings from your plan.
4. How are your investments performing?
Make sure you know what funds your money is invested in and keep an eye on how they’re performing. With access to your online pension account, you can see fund factsheets and key investor information that shows how your funds are invested.
You may wish to consult a financial adviser if you’re unsure. You can find an adviser on MoneyHelper. There’s likely to be a cost for advice.
5. Align your pension to your values
While staying on track is usually about money goals, your pension could also be a way of aligning your investments with your values. For example, you may want to make sure your funds aren’t invested in companies that manufacture tobacco or have excessive fuel consumption.
We recommend speaking to a financial adviser to talk you through your objectives, as well as the implications to switching funds. There’s likely to be a charge for advice.
Mark a date for your next pension health check
Completing a pension health check isn’t just a one-time thing. Regular checks are important because your circumstances could change over time. When you complete your pension health check, mark a date in your diary to do this again. For example, you could do a full pension and savings health check annually on the same date.
When you’re getting close to retirement
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As we all get ever closer to retirement age, there’s certain things we need to put in place to make sure we’re ready.
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Doing an overall financial check is a good start. If you have a financial adviser, they'll be able to help you with this. Work out what finances you have, what you can save and what you need for when you retire. Then, working with your adviser, put in place investment plans that will grow at the rate you need it to over the timeframe you have before you ideally want to retire.
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Then as you get closer to retirement, you need to make sure that the investments you do have are at a level of risk that suits you.
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There are several options available to you at this stage to make sure you’re continuing to hit your goals. Doing your own research, and taking some advice or guidance, will help you understand what options are best for you.
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There are many options available to you at retirement - which can be confusing - so at this stage it might be wise to consider bringing your retirement pots together if you haven’t already done so. Remember that consolidating isn’t for everyone – if you’re unsure, you should get some financial advice or guidance.
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Whatever your circumstances, don’t stress. We’ll work together to give you the best chance at the retirement you’re hoping for.