How can savers keep on track with their pension savings?

26 November Reading Time: 4 minutes

In theory, saving for retirement should be a straightforward process. Saving tends to start at the beginning of one’s adult life, either through a personal or workplace pension, and individuals tend to make regular contributions until they reach their target retirement age.

But of course, life can throw people curveballs, and savings patterns can be easily disrupted. Throughout the previous two years alone, savers have had to contend with various challenges, from changes in employment status due to Covid-19, to record low-interest rates and rocketing inflation. Consequently, people may feel like their savings plans will have been thrown off course.

However, this does not mean that savers cannot get back on track. Indeed, there are simple steps and precautions which can be undertaken to ensure that a financially secure retirement remains firmly within reach.

Consistency is key

Consistent pension contributions are instrumental to ensuring that retirement plans stay on track. Admittedly, this may seem difficult during times of financial hardship – particularly throughout the pandemic. That said, it is important to remember that cutting down on contributions now will mean that individuals have less income when it comes to retirement.

Savers should therefore refrain from pausing contributions. Instead, they might review their existing budgets and see if cuts can be made elsewhere. If this is unrealistic, savers should consider reducing contributions slightly to provide themselves with some financial breathing space.

The key is to maintain consistent contributions – otherwise, Britons may find themselves in deep water later down the line.

Track down lost pensions

Another key point is to ensure that savers have tracked down lost pensions. The modern workforce is accustomed to a regular job and career changes – indeed, research from Appjobs found that that UK residents are changing jobs over 17 times throughout their working lives. And with most job moves comes a new workplace pension scheme.

With savers acquiring so many pension pots throughout their careers, it can be very easy to lose track. In fact, research from My Pension Expert found that a quarter (24%) of savers find it difficult to manage multiple pensions.

So, it is vital to track down pension information, to understand the value of each pot and determine how best to manage it. The Government’s pension dashboard, which is due to launch in 2023, will certainly make it easier for savers to do this.

Until then, savers can use the Government pension tracker service, which helps people to find the contact details of previous employers’ workplace pension providers. It may sound like a cumbersome process, but individuals may find that they have lost track of hundreds of pounds; this will certainly be a welcome contribution to retirement savings.

Seek Advice

One of the best ways to ensure pension savings are on track is to regularly review and adjust one’s retirement strategy to make sure it is suitable within changing economic contexts. This may sound like a complex task, but it needn’t be. Indeed, independent financial advice is on hand to help.

Advisers, like our team at My Pension Expert, are able to conduct thorough reviews of clients’ current financial situation and their financial goals and determine how they can best achieve them. For some, this may involve switching pension providers, whilst others may benefit from making investments to make their money work harder. The key with advice is that it is tailored to suit the needs of each specific client, so everyone can stay on track with their personal retirement strategy.

Better still, My Pension Expert’s advisers conduct annual reviews of clients’ retirement plans, and will always make recommendations if they feel the strategy should be amended.

As individual circumstances change, it may seem near impossible to remain on track with retirement strategies. However, provided that savers are diligent with their money and seek independent financial advice, Britons should be able to achieve the financially secure retirement they deserve.

 


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