The sky could be the limit when it comes to pensions. Without getting too technical about it, they essentially provide people with the tools to save up for the retirement lifestyle they want. And retirement ambitions will differ from person to person.
Some may dream of travelling around the vineyards of France, others may aim to retire and move to the peaceful countryside. Regardless of what your retirement goals are, the key to achieving them comes down to one thing: your pension potential.
What is pension potential, you ask? Luckily, My Pension Expert is here to explain.
What is my pension potential?
Pension potential is essentially when your pension works as hard as possible to help you achieve the best possible retirement outcome to suit your needs. Whilst this might sound simple enough to achieve, in reality, there aren’t many people who are realising their full potential.
Indeed, My Pension Expert’s own research found that the majority (62%) of UK savers don’t know how much they have saved into the pension or pensions. Without such knowledge, it is near impossible to understand whether your pension (or pensions) could be working harder, or even develop a retirement strategy to begin with.
That said, reaching your pension potential needn’t be a difficult or overwhelming task. It just takes a bit of organisation and pre-planning.
What is my potential?
Much like retirement goals, everyone has their own unique pension potential. It just takes a few simple steps to find it.
First things first, it’s important to track down all your pensions – both personal and workplace. Given how fluid today’s jobs market is, it’s likely that most people have several workplace pensions. The Government’s pension dashboard, which is due to launch on 31st October 2026, will certainly make this task a lot easier in future. However, until then, it is possible to track down lost pensions via the Government’s pension tracker. All you need to know is the name of your previous employer, and you can find the contact details of your provider – you can then get in touch to find out your pension details.
Once you have all your details, you can calculate how much you have saved.
The next step will be to consider how you want to enjoy your retirement. Ask yourself, when you want to retire, and the type of lifestyle you would like. Consider how many holidays you’d like to take each year, how many times you’d like to eat out in restaurants each week, and whether you plan on moving house when you retire.
You will then be able to consider whether your pension savings are on track to help you secure your retirement dreams. And, if you are curious as to whether your pension could be doing more for you, then you can always seek advice from some experts….
Use your experts
If you want to understand how you can unlock your pension potential, one of the best options is to seek independent financial advice.
Independent financial advisers, like our team of experts at My Pension Expert, will develop a retirement plan to suit your needs factoring in all elements of your current needs, future goals, and of course, your pension savings and assets.
From there, they will be able to develop a plan which is unique to you. So, for example, it may be best for someone to place some or all of their savings in a higher-risk investment portfolio, as it could offer the potential for stronger gains in the future. Someone else, however, may be suited to a lower-risk portfolio, which might not fluctuate as much with market changes. The key is that our advisers will make a recommendation that works for you and helps your pension to reach its full potential.
Of course, it is important to remember that, as is the case with all investments, there is a risk. However, your adviser will explain all this to you before you make a final decision. You will be informed every step of the way.
Retirement should be an exciting time, where people get to relax and enjoy their free time after decades of hard work and saving. So, it is only right that you have the right tools to help you achieve just that. And with the help of My Pension Expert’s expert advisers, anyone will feel able to reach their pension potential, and their dream retirement.