how to get the most out of your savings

Pensions made Simple: How to make your pension work for you



Posted on: 3rd April 2020

It’s easy for anyone to forget about their pension until the time comes to retire. However, there are things you can do to stay on top of it so that you can get the most out of your savings.

How to make your pension work for you: do the maths
The first thing you must do is look at your expenses, whether it be a mortgage or your bills, and determine how much of these will receive coverage by any State Pension you may have. Whatever is left (plus or minus) must be covered by any other sources of income you receive, such as rental payments from any properties you own.

Check your National Insurance contributions
The state pension should not be taken for granted. To qualify for the full amount, you must have made enough qualifying years of National Insurance contributions. The years you have contributed outweighs the amount you have paid in. However, should you have any gaps in your record, you may be able to fill these to boost your entitlement. Speak to an IFA to find out more.

Workplace schemes
This should go without saying, but you will likely be enrolled in your workplace pension scheme. You may have multiple pensions from multiple areas of employment, so be sure to gather as many as you can by contacting your previous employers to find out.

Save more if you can
We understand that the cost of living is the first thing on your mind. But it helps to put some money aside for later in life. Any pay rise or bonus could leave you with extra cash that you can put into your pension for an enjoyable retirement.

Check your annual benefit statement
It’s always wise to regularly check on your pension, something that is quite easy to do! Your pension scheme will provide you with an annual benefit statement. This will break down your entitlements based on your contributions to date.

By checking your pension on an annual basis, you can assess how it’s working for you and whether you need to make any changes such as find alternative investment options. Most people tend to only view their pension shortly before they retire. By this time, it may be too late, and you could find yourself with fewer benefits than you would otherwise be entitled to, had you assessed your investments each year.

Talk to Haven IFA
Seeking independent financial advice is a great way to better understand your investments so that you can get more when you retire. If you would like to learn more about how to get the most out of your savings, get in touch with Haven IFA.