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How can pension planners make sure resolutions stick?

The new year is here! And with it arrives the inevitable round of resolutions for 2023. 

Setting targets for self-improvement tends to be standard practice for many Britons. Yet sticking to them is often easier said than done. This is certainly true of financial resolutions, such as getting on top of one’s pension plan or retirement strategy. 

So, what can be done to change this? After all, in the current climate of double-digit inflation and rising interest rates, it is likely that many people will have set themselves the goal of better managing their finances in the year ahead. 

To help, the My Pension Expert team has outlined a few useful pointers. 

Getting off to the right start 

Before developing a new financial strategy, savers must assess their current financial circumstances. This means taking stock of all incomings, outgoings, savings, investments, and pension pots to create a clear picture of their situation. Doing so will make it easier to set realistic goals for 2023 and beyond.

Where retirement finances are concerned, it is important to know where all one’s pensions are located. This process will eventually be made easier with the launch of the Government’s Pension Dashboard which should launch later this year, even though it has been plagued by many delays and setbacks. 

Until then, savers can access the government’s pension tracker can help them hunt down pots they might have lost track of. This provides them with the correct contact information to reach out to their pension provider, and access their information. Whilst this might be time-consuming, it is an important starting point for helping Britons to understand their current financial situation. 

Make saving more convenient

It can be all too easy to push pension contributions down in one’s list of priorities, particularly if retirement is decades away. This is especially true during a cost-of-living crisis, when more immediate financial concerns might arise. 

So, it is important to make saving for retirement as convenient as possible.

For most, this will involve keeping up contributions to a workplace pension. Through such schemes, employers deduct the agreed pension contribution from an employee’s salary, making contributions an effortless, automated practice.

Alternatively, adults with a personal pension should consider setting up a regular direct debit to contribute to their pension. Consequently, savers can build up their pension pot without any hassle. 

Engaging with their plan 

Once savers have established a consistent savings pattern, it is vital to regularly engage with their plan. Reviewing one’s strategy on an annual basis would certainly be advisable. 

This will enable savers to remain on track with their savings goals and avoid any dramatic overhauls, should there be a sudden change in political, economic, or personal circumstances. 

Seek advice

The steps outlined above might feel like a daunting task. Fortunately, help is always on hand in the form of independent financial advice. Qualified advisers, such as our team at My Pension Expert, will be able to review an individual’s existing financial situation while considering wider economic issues and recommend a tailored retirement plan to suit their needs.

It is hugely valuable to seek out independent financial advice when managing pensions, savings, and retirement investments. The adviser can help set realistic goals, work towards achieving them, and make adjustments if circumstances change.

2023 will pose inevitable challenges for savers, making it all the more important to remain on top of their finances. Whilst a daunting task, this can be possible with an honest review of their current financial situation and seeking the support of advisers from the likes of My Pension Expert. Doing so will enable savers to move forward and plan their financial future with confidence.