17th October 2024
Only two-fifths of Britons know how to boost their pension
HOW MUCH MONEY WILL YOU HAVE FOR RETIREMENT, WHERE IT’S INVESTED, AND WHAT ARE YOU BEING CHARGED?
According to new research [1], just two-fifths (42%) of the UK population know how to contribute more to their pension. The study also found that a quarter of those with multiple pots would not know where to start consolidating multiple pension pots accrued throughout their working life.
The Financial Conduct Authority (FCA) Financial Lives Survey reported that 47% have not reviewed how much their pension pot is worth in the last 12 months. Pension saving can seem complicated and inaccessible for many people, but we should all be doing it as soon as we start working.
UNDERSTANDING PENSION CONSOLIDATION
Pension consolidation is a process that can gather up your previous pensions and bring them together. As you move from job to job and change addresses, it can be tricky to manage pensions. With every new one, there’s more admin to deal with.
By combining them, you can have a clearer view of how much money you have for retirement, where it’s invested, and what you’re being charged. This consolidation can simplify your financial landscape. It’s important to remember that a pension is an investment. Its value can go down as well as up and could be worth less than what was paid in. Pension consolidation won’t be right for everyone.
MANAGING YOUR RETIREMENT SAVINGS
Gathering up your pensions could give you a better idea of your overall pension pot and what it could be worth when it’s time to retire. Lower charges are another benefit; you could potentially save on management fees, which can help your pension pot grow faster.
The more pensions you have, the harder it can be to track them and how they’re performing for you. With just one pension, managing your retirement savings becomes much easier.
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Source data:
[1] Lloyds Bank research 09.05.24
THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH.
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESS BLE UNT L AGE 55 (57 FROM APR L 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAX PLANNING.