It’s so easy to set up a pension, set up your contributions and then basically forget about it, safe in the knowledge that your pension pot is growing every month and year.
But this approach means you might miss out on opportunities to maximise your income in later life.
It’s therefore a good idea to keep a close eye on your pension, perhaps every six to 12 months, so you can take the steps necessary to ensure you have a happy and fulfilling retirement, free of financial worries.
Why you should check your pension
Make sure you’re on course for the retirement you want
You want to do more than just make ends meet in later life. You want to enjoy a sense of financial freedom, so you’re in a position to enjoy the hobbies, activities and pursuits that bring you joy.
In that case, it’s really important to be sure you’re on track to achieve this outcome, and you can only do that by checking your pension details, so you can make changes where you need to.
Pension rules will change over time
As the years roll by, governments of different stripes will change rules and regulations concerning pensions.
For example, the limit on the total amount that can be saved in a pension each year tax-free was increased from £40,000 to £60,000 just last year.
This kind of change can make a big difference to how much you feel you can realistically afford to put into your pension.
You should therefore make a point of staying up-to-date with the latest rules, so you can respond accordingly and make financial decisions that reflect the current situation.
Changing circumstances at home and work
Your personal and professional circumstances may evolve considerably as time passes. Perhaps you’ll get married and have children, which transforms your priorities. Or maybe you’ll get promoted at work and see a big increase in your salary, in which case you can afford to contribute more to your pension.
Feel confident about your future
You want to live your life free of financial worry, and making sure you’re on top of your retirement plans is one way to make this happen.
If you review your pension regularly and make sure you’re on course to achieve the type of retirement you want and deserve, you’ll gain invaluable confidence and peace of mind.
That’s something that money simply can’t buy.
Make the most of employer contributions
Many employers will commit to matching the amount of money you put into a workplace pension.
If that’s the case for you, it might be worth reviewing this scheme to work out if you can afford to contribute a little bit more than you are right now, so your employer has to contribute more too.
Our specialist financial planners are here to help you plan for retirement and maximise your pension income.
If you have any questions on setting your finances up for future success, please get in touch with our friendly team, and we’ll be happy to speak with you.