frozen pension

Keeping Track of your Investments and Savings



Posted on: 30th August 2018

How do you envision your life after work? Do you wish to travel? Maybe take on new passions or set up your own business? Perhaps you want to spend more time with friends and family? Regardless, there are many simple things you could be doing now that can help make this happen in the future. With 73 per cent of people between the ages of 45 and 54 dreaming about life after retirement, it is ideal for people to keep track of their investments and savings.

Taking Control of your Investments and Savings at any point in life

From our 20s to our 40s, life after work can seem too far away to prioritise. People are usually more concerned with getting up the property ladder, juggling work and family life. However, this is something you should always consider in some sense. To get yourself started, we have some useful tips to help you start taking control of your investments and savings.

Save what you can and keep an eye on what you are saving

Saving whatever you can afford to spare earlier on in life means that your savings have a bigger chance to grow. The tax relief on your contributions makes pensions an ideal way to save for your future. Workplace pensions have made it easier for people to save. By the end of this year, almost 10 million employees will be one step closer to an easier retirement thanks to being part of auto-enrolment.

You can use apps to keep track of your pension savings online. This will help you save more as and when you can. According to Money Wise, you can be greatly rewarded by upping your pension contributions, even by just a little bit. What’s more, it could turn a few pounds each month into thousands into your pension in the long run.

Of course, as your pension is an investment, it can go down as well as up. You could get back less than was paid in and tax rules can change in the future and will depend on your particular circumstances.

Find your Pensions when you change jobs

If you are moving jobs, as many do these days, you may forget about your pension scheme along the way. In the chance that you do lose track of a pension, you can easily recover it by contacting the pension provider or your former employer to kick things off. If you do not have the necessary details, you can also use the Pension Tracing Service.

Once you have tracked down your pension, it’s a good idea to review it on an annual basis. If you have a few, it might help to be them together into one to make it easier to review. Consolidating isn’t the best choice for everyone, so be sure you are not giving up any valuable guarantees.

Choose your Retirement Date

Choosing your retirement can help set a timeframe to save for the life you have in mind. It all comes down to getting into the habit of planning ahead and saving. Though you may not realise it now, setting a date for your retirement on a pension plan does matter. Once you have done this, you can update it as and when you need to. Regular reviews can also help as a lot will change throughout your life.

Make sure your Investments are in the right place

It is never too early to start preparing for the future you want. Where you choose to invest your pension contributions could make a huge difference to the life you will have in retirement. Just like any important decision you make, it is worth taking your time to think about things such as who manages your pension and how much risk you are comfortable with. Some options begin moving your pension savings into lower risk investments as you get closer to retirement. If you are not in one of these, it is important that you have the right retirement date for your plan.

If it does not, you may find your pension savings being moved at the wrong time. If moved too early, there is a chance they could miss out on any growth. However, they can also go down as well as up n value. On the other hand, if your savings are moved too late, they could be exposed to unnecessary risk.

Getting the right Support at the right Time

If your pension provider is aware of your plans, they can give you the right information and support at the right time, regardless of your age. Thanks to pension freedoms, you now have more choice about how and when you can take your pension savings. In most cases, you can access your savings from the ages of 55 (though this may change in the future).

You can also take an income from your pensions while you are still working and keep paying in. However, there is a limit to how much you can save tax-efficiently if you choose to do this. You can also choose if and when you stop working.  It’s a good idea you talk about these through with an independent financial advisor for the best advice possible.

Talk to Haven IFA

Our expert financial advisors are here to help you with every aspect of your investment and retirement planning. To ensure you have a manageable plan for an enjoyable retirement, get in touch to speak with us and see how we can help.