Ever wondered how your future might look?
Source: Aegon Workplace Team31 January 2020
If so, it’s worth giving Retiready a try, our free service which generates a score based on your current contributions, your employer contributions, when you plan on retiring and more. It helps you see if what you’re saving today is enough to give you the lifestyle you want when you retire.
Your score is based on:
- what income you’d like to have when you retire;
- how much you’ve saved towards it and how much you’re paying in each month, and
- how recently you reviewed your pension plan and fund performance.
Once you know your Retiready score, you’ll find it easier to weigh up your options and keep your pension plan on track.
See how Jo, Tim and Rose used their scores to help them see things differently, or get your score here, now. Jo, Tim and Rose are fictitious characters in different life stages created to show how the Aegon Retiready hub can help Aegon customers weigh up their options. This article shouldn't be taken as financial advice. If you're unsure what is best for you, speak to a financial adviser.
Jo made a simple but important discovery thanks to her Retiready score. She had never thought to properly review her retirement plans and didn’t even know she could check how well her investments were doing. Answering ‘Never’ to both these questions dragged her first Retiready score down. She scored 52.
Once Jo took this time to check out some of the tips and tools on the Aegon Retiready hub, she started to understand how important it was for her to see her pension plan as something to keep in mind. She now regularly checks the Aegon website to keep up with what’s new and is a lot more knowledgeable about pensions.
Her score increased to 72.
Tim started out with a Retiready score of 55. He set his target retirement income at £24,000, the same as his current salary. He was surprised to discover that his pension pot would leave him short by £2,700 a year. This wasn’t a big problem for Tim as he still had time to consider his options. He could:
- keep working a few years beyond his original planned retirement age of 65;
- move some of his rainy-day savings into his pension;
- reduce his target income to 70% of his current salary;
- choose not to take part of his savings as a lump sum, as well as
- increase his monthly contributions.
Tim explored his options, and he’s now a lot more confident the money he’s investing in his pension plan will give him the lifestyle he wants when he reaches his late 60s.
And after making some changes, Tim’s score went up to 80.
Rose made a big decision after finding out her Retiready score and reviewing her options. With retirement only a few years away, she was already keeping an eye on her pension growth. Her Retiready score came in at 64. So, she knew there was room for improvement.
She noticed she was slightly short of reaching her retirement income goal and began to look at how she might get on track.
In the end, it was simple. Rose loved her work but had always seen 65 as the age she would stop working. By postponing this a couple of years, Rose discovered her pension pot would more than meet her goals - and give her an even bigger cash lump sum shortly after her 67th birthday.
Rose scored 76.