Do you ever think about your future? Are you currently paying in to a pension scheme? It’s something that we should all be doing but a lot of us simply don’t give it enough thought. But it’s important to remember that your future financial security is incredibly important and it’s something we should all be planning for. The world of pensions can be incredibly daunting and confusing, so if you need a little advice you might find this post helpful.
Here are a few things to consider when looking at your pension…
1. How much will you need?
A good place to start is to calculate roughly how much you think you will need for your retirement. Of course, there’s no way of knowing exactly but you can get an idea by working out how much money you will need to maintain your lifestyle and for how many years. Then work out how much you need to be saving whilst you are still working to achieve this. You will probably be quite surprised at how much you need to be putting away so it’s important to start sooner rather than later.
2. Be aware of scams
Sadly, there are scammers out there who want to take your pension pot away from you, so be vigilant when discussing penion schemes and don’t jump straight into anything. Did you know that around half of all pensions are said to have been mis sold? Shocking statistic, isn’t it? If you are one of these people there are options available and you may be able to make mis sold pension claims.
3. Is the state pension enough?
Many people assume that the state pension will be enough for them and that they don’t need to bother saving their own pension pot, but this may not be the case. The full state pension amount is currently £168.60 per week. Is this an amount that you feel you could live off? It’s important to work this out as many of us will need to top up our state pension in order to maintain the lifestyle that we are used to.
4. How much are you currently saving?
You may have been automatically enrolled into your workplace pension. This is something that most employers now do so check if this is the case for you. The way that this works is that a percentage of your salary will automatically be put into your pension pot and this is then matched by your employer. It’s a good thing to have as you don’t even notice the money being taken. But this amount may not be enough, so you’ll need to check what percentage you are currently saving and whether you need to increase it.
5. Know your options
Lastly, read up on pensions, make sure that you are informed and know your options. This is best way to know where you stand and ensure that you will be financially secure in your retirement.
Do you currently pay into a pension scheme?
Thank you for reading.
*Disclaimer – This is a collaborative post*