I received an annual statement for my pension, what should I check?14 October 2016
Your annual statement shows how your pension is performing and what you might expect when you retire. It’s important that you take time to review it to make sure your pension savings are on track.
The main areas to focus on are your:
- pension contributions
- investment performance
- projected retirement income and how this fits with your retirement goals
Pension contributions - are you paying enough?
As a general rule of thumb, you should try to save as much as you can into a pension. It’s tax efficient as the government gives you tax relief on everything you save, and it gives you peace of mind that you’ve saved as much as possible for your retirement. The value of any tax relief depends on the your individual circumstances and the level of annual allowance that currently applies. Find out more about the annual allowance(Opens new window).
There's also a limit on the value of tax-advantaged pension savings you can have under all registered pension schemes you're a member of before tax charges apply. Find out more about lifetime allowance(Opens new window).
You can find out how ready for retirement you are by simply answering a few questions to get your Retiready score(Opens new window) and you can see how your retirement savings measure up.
The value of your overall pension fund is largely dependent on investment performance and how much you’re paying for your chosen investments. If they’re not performing as expected, or you’re paying a lot to be invested in certain funds, you might want to consider switching your investments - it's easy to do.
The value of an investment can fall as well as rise and isn't guaranteed. You could get back less than you originally invested.
If you have a One Retirement or Aegon Retirement Choices account you can switch as often as you like. If you have any of our other products, you can usually make up to 20 switches a year free of charge.
Before switching funds, we recommend you speak to your financial adviser. If you don’t have a financial adviser visit unbiased.co.uk(Opens new window)
Will it be enough for you to have the retirement lifestyle you hope for?
Your Retirement Planner can help you understand this better. It offers tools and support which are designed to help you make informed decisions about your financial future. The planner:
- Explains your options in a way that’s easy to follow
- Lets you see how different choices can affect your income
- Has support and guidance to help you plan for the retirement you want
Visit Your Retirement Planner(Opens new window) to find out more.
Remember, the value of an investment can fall as well as rise and isn't guaranteed. You may get back less than the amount originally invested.