More than a million people save toward their future with Smart Pension. We know, from speaking to many when they first join Smart Pension, that two things are common:
We also know that it doesn’t have to be that complicated. The pensions world is full of jargon, and the media is not always so great at simplifying it.
In this article, we’ll guide you through a few simple steps that could help you to feel more financially secure in the future.
To kickstart your plan, the first step is to assess your current pension situation.
The three types of pensions are the ‘State Pension’, your ‘workplace’ pension and any ‘personal’ pensions you may have. Many people do not save into a personal pension, and those who do will usually know about it. That means, for most of us, the State Pension and workplace pensions will together provide the money we’ll receive during retirement. It’s easy to check both of these:
By doing this, you’ll see how much you’ve already saved and get a clear picture of your current situation. If you use Smart Pension, once you’ve logged in the pension calculator tool, will show you a projection of what you are likely to receive when you retire.
Using both of these together helps you understand what you’ll receive from the state, and what you’ll receive from your workplace pension, and these are the two sources of money that most people in the UK will rely on during their retirement.
For some, there is an extra source – a personal pension. Most who have these will already know about them. And for many, which leads us on to step two.
For many of us, pension savings may be spread across various pension providers from previous jobs. It’s easy to lose track of these savings, but it’s never too late to track them down. They can also be ‘consolidated’ – gathered together – and brought to your current workplace pension provider, making it easier to manage your retirement savings.
Bringing your old pensions together can make planning easier, cut down on the time you need to manage your pensions across different accounts and save you money. This is because all providers charge a fee for keeping your money with them, so bringing all your pensions into one account means you are only paying one fee instead of several.
If you use Smart Pension, we have simple tools both to trace your old pension savings, and if you wish to, you can combine them and manage them all through us. You can start now by using our handy tool to find your old pension savings.
Now that you’ve taken stock of your current pension situation, you’re in a great position to make a plan.
If you’re saving with Smart Pension, there are several actions you can take , including:
Each of these steps is just a start. However, if you have checked your current pension savings, traced and brought together your old savings from previous jobs and taken stock of where they are then you’ve already taken the largest steps on your path to the financial future you want.
The information, money-saving tips, tools and techniques provided are for guidance purposes only and do not constitute financial advice. Where we provide links to third-party websites we are not responsible for their content. It is therefore important you carry out your own independent research.
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