Saving into a pension can feel like the main requirement for preparing financially for retirement. However, building up retirement savings alone doesn’t necessarily tell you whether your current savings and expected income support your plans.
Taking a more active interest in your retirement savings can help you understand what you’re building towards and make deliberate choices along the way. It can also make it easier to identify gaps, keep track of different sources of retirement income and adjust your approach as your circumstances or long-term goals change. Here are three ways to take more control of your retirement savings.
1. Bring your old pensions together
If you’ve built up pension pots with previous employers, consider whether pension consolidation could make them easier to manage. Having pensions spread across several providers can make it harder to keep track of your retirement savings.
For example, you might have several pensions from previous jobs. You could compare whether keeping those pensions separate or bringing them together would make them easier for you to manage.
Having several pension pots isn’t necessarily the issue; what matters is how manageable they are together.
2. Check your State Pension forecast
Your State Pension could provide another source of income in retirement. You can use the UK Government’s State Pension forecast service to check what you could receive, so you know how much this source could contribute to your retirement income.
This could mean using your State Pension forecast as a starting point when assessing what your private retirement savings might need to provide. Comparing the two can show how much of your expected retirement income may need to come from your private savings.
Your private savings don’t need to be viewed in isolation from the retirement income you may receive from the State Pension.
3. Review how much you’re paying in
It’s also worth checking how much you’re currently contributing to your pension. Your current contribution level affects how much you’re putting aside for retirement.
For instance, you might review your workplace pension contribution after receiving a pay rise. Doing so can help you decide how much of your new income you want to put towards retirement.
After reviewing your contributions, you can make a more informed decision about whether to keep your current level of saving or reconsider it.
Take control
Taking control of your retirement savings starts with knowing what you have and making deliberate decisions about it.
Set aside time to review your retirement plans regularly. Regular reviews can help you see whether the decisions you’ve made still match what you’re working towards.
You may also find it useful to keep a simple record of your pension providers, contribution levels and latest State Pension forecast. This gives you one place to refer back to when your circumstances change. If you change jobs, receive a pay rise or adjust your retirement goals, you can revisit the information and decide whether any action is needed.
What could you do today to take more control of your retirement savings?
