While pensions are unlikely to be top of mind at Halloween, for some, retirement planning can still feel a little scary. Financial jargon, uncertainty about how much to save and the challenge of knowing where to begin can make it easy to put off making decisions about your future.
However, taking control of your future doesn’t have to be a total financial overhaul. Facing your pension fears can start by simply understanding what you already have and taking small, manageable steps to protect your long-term wealth.
Susan Hope, Retirement Expert at Scottish Widows, added: “Taking control of your retirement doesn’t have to give you the fear factor. Many people put off organising pension-related tasks simply because they lack clear guidance. Breaking it down into small, manageable checks is the best way to banish the dread and keep your long-term savings on track.”
Susan shares her top tips for keeping retirement savings from becoming a horror story.
- Give your investments a scare check
Don’t be in the dark! Our latest Scottish Widows research reveals that 63% of adults with low financial confidence have done little to no research into their retirement, while 28% have made no retirement arrangements whatsoever. Instead of focusing on the scary figures, start by balancing the fears with what you actually want: think about the type of retirement lifestyle you really desire first. Once you have a personal vision in mind, use online pension calculators to help formulate a plan, understand how much you’ll need, and see how starting early brings that ideal future to life.
- Stop leaving free money on the table – it’s a grave mistake
If your employer offers one and you can join, pay into your workplace pension scheme. Thanks to employer contributions, you’re not alone, as they pay into your pension too; this is the most straightforward boost you can get. Employer matching contributions are essentially free money, yet many savers fail to contribute the minimum required to unlock the full amount. Review your contribution rates now and make sure you are not leaving this invaluable ‘hidden treasure’ on the table. If you are in a relationship, make sure you both check your workplace schemes to ensure you are maximising employer top-ups across both households, doubling down on free money rather than leaving it behind.
- Shine a spooky spotlight on your balance
Managing your pension shouldn’t leave you in the dark. With 26% of adults feeling completely overwhelmed when making financial decisions, taking small digital check-ins can help take the ease off. Our research also shows 42% of people value an easy app to handle their finances. Logging into your provider’s app or dashboard can transform an unknown balance into a tangible plan, helping you spot any savings gaps early on.
- Avoid nasty frights by checking your State Pension now
Getting the HMRC app on your phone or tablet is a really simple way to stay on top of your pension prep – and should help you avoid any nasty frights later on! The app will give you a clear understanding of your state pension, when you become entitled and how much you are due, as for millions of people it will be the cornerstone of their retirement income.
- Don’t ghost your old pensions
Don’t let forgotten savings vanish into the ether! If you’ve changed jobs over your career, you might have old workplace pensions gathering dust. Playing pension detective and hunting down lost pots could give you a pleasant surprise. The latest figures from the Scottish Widows pension tracing tool reveal that we have helped 59,000 people track down their missing money and found 43,000 lost pots worth a staggering £434.3 million. Tracing old schemes brings hidden money back into view and ensures every pound you’ve earned is working for your future.
