We asked. You answered! Last week, we ran a poll in the egg Facebook group asking how everyone felt about their pensions. Over 750 of you responded in just 24 hours. A massive 45% admitted, “I’ve got one… but couldn’t tell you how it’s doing.”
If that sounds like you, you’re definitely not alone and you’re certainly not failing. For many of us, pensions feel distant and complicated, something we’ll “get to later.” But understanding how your pension is performing can make a huge difference to your confidence about the future (and your future income).
So, we teamed up with our friends at egg partner Melville Independent to share their top 5 tips on checking your pension’s health. Plus, there are some easy steps you can take right now to feel more in control.
1. Log in and look beyond the balance
Most pension providers have online dashboards or apps. Checking the current value is a good start but look at your annual statement too. It shows how your investments have performed over the past year. This is your first clue into how your pension is performing versus what you’re contributing.
2. Check your contributions
Are you still contributing the same amount you were five years ago? Many women take career breaks or move jobs and lose track. Review your current contributions as small increases can make a big difference, especially if your employer matches them.
3. Think about how your pension is invested
You should check how your pension is invested and whether the funds change as you get older. As you near retirement, many workplace pensions automatically switch away from growth funds into more conservative investments. This may not suit you if you plan to retire at a different age, or if you intend to access your benefits gradually.
It could be worth reviewing your investment strategy or speaking to an adviser.
4. Track down old pensions
If you’ve had more than one job, you may have multiple pension pots. Use the Government’s Pension Tracing Service to find them or ask an adviser to review these so you can see a clear overall picture.
5. Get a professional review
Even one session with a regulated financial planner can make a huge difference. They can explain your statement, project your likely retirement income, and help you decide whether your pension is working hard enough for you.
Melville Independent are a Scottish-based company offering independent financial advice. They’ve been assisting clients with wealth management advice for more than 10 years from their city centre offices on Melville Street Edinburgh.
If you'd like a free financial audit, send an email to [email protected]
