What the Government’s Pension Review Means For You
If you've heard rumblings that the Chancellor is looking to change pensions, you might be wondering what this all means—…
In the years leading up to retirement, you’ll typically have a clearer sense of when you want to retire. These years can be key because if you find the need to increase your savings, you’ll still have time to make some changes.
In this blog, we’ll share five steps you can take today to help you boost your pension savings.
Many employers in the UK offer workplace pension schemes, often with employer contributions. If you are eligible for a workplace pension, your employer is legally required to sign you up and contribute to it. You also chip in yourself, usually through automatic deductions from your salary, which goes towards building your retirement fund.
It’s really important to make the most of these pension plans because they can really boost your savings for the future. First, make sure you’re signed up for your company’s pension plan. This can be as simple as checking with HR or reviewing your employment documents. Then, think about increasing how much you’re putting into it to get the most out of it.
Another great thing is that many companies will match a percentage of what you put in, which means more money for your retirement. It’s definitely something you shouldn’t miss out on!
Your eligibility for a state pension increases with each year you work and pay National Insurance (NI) contributions. However, you may have gaps in your NI record due to periods of unemployment or perhaps even travelling abroad.
It’s vital to think about buying additional National Insurance years. In fact, a recent study claims that: ‘You may be able to turn £800 into £5,500 in your state pension.’
Your state pension is based on the number of full national insurance years you’ve built up. If there are any years you need to buy back, it’s a good idea to look into it sooner rather than later.
This could potentially result in a significant increase in pension payouts. However, there are many factors to consider, so it’s essential to carefully assess whether it’s the right decision for you. By speaking to our team, we can work with you through this.
It’s essential to grasp how even those small spending habits can build into something significant over time, especially if you invest them wisely. Being mindful of your finances and setting up a monthly budget can really keep you on the right path towards saving for retirement.
Just keeping an eye on your expenses and considering cheaper alternatives or delaying non-essential purchases can make a huge difference.
We would recommend small tasks like going through your subscriptions and cancel any you don’t really need anymore. These little steps can gradually bump up your monthly savings, which might not seem like much at the moment, but trust us they’ll definitely add up over time.
When you receive a pay raise, it’s easy to view it as extra money to spend on immediate needs rather than saving for the future. But redirecting a portion of it into your pension can significantly boost your savings.
Start by contributing what you can afford. Then, whenever you get a pay increase, allocate some of it to your pension. This way, you can still enjoy some of the benefits of your higher income whilst paying into your pension. It’s a win win!
Many people worry about understanding their pension statements because they’re often filled with confusing terms, much like trying to figure out your gas or electricity bills.
It can feel overwhelming and hard to know where to start. But simply talking to experts, like your Pension Provider or a Financial Planner, can make a big difference. They’ll explain things clearly, giving you a better picture of your financial situation as you get closer to retirement.
Knowing the value of your pension now can help you plan wisely. It lets you adjust your plans based on any changes in your life or financial goals. And if you realise your pension savings aren’t enough, you can take steps like saving more or looking into different investments to make up for it.
Boosting your pension savings in the UK doesn’t have to be complicated. Remember, every pound saved today is a step closer to financial peace of mind. Start planning and saving for your future today. And if you need it, we’re always here to help.
If you've heard rumblings that the Chancellor is looking to change pensions, you might be wondering what this all means—…