ways to boost your pension
You might think that you don’t need to worry about your pension just yet, but the truth is that building up a large pension pot is absolutely crucial if you want to live a comfortable retirement. The earlier you start saving, the better.
Of course, everyone has a different vision of what their dream retirement would be, but there are certain steps you could take to boost your pension pot/s whatever your circumstances.
Increase your regular savings
If you’re worried you might not have enough when you retire, it would be a good idea to add to your regular pension savings even by just a small amount. This way, you’ll get more tax relief, and your employer might even pay in more too. If you can’t afford to do it right now, perhaps you could audit your monthly expenditure and see if there is a way to find a better deal on your utilities or cancel an unused subscription. Could you manoeuvre things around to find this extra money?
Pay in a lump sum
Did you know you can pay money into your pension at any point in your life? The more money you put into your pension early on, the longer your money has to grow! So, if you have a large amount sat in the bank earning little interest and you don’t need to touch it, why not pay this lump sum into your pension.
Consolidate your pension
People are job-hopping now more than ever, which means that the average person ends up with multiple pension pots laying around. In fact, this might be the reason why in the UK there is £19 billion lost in forgotten pensions…shocking right?
To make it easier for people to track their overall savings, it might be a good idea to combine pensions together into one pot. Often this means lower fees and more flexibility, but it’s always important to seek professional advice before making this decision.
Defer taking your state pension
Most people would choose to retire as early as possible, but who’s to say if you have an enjoyable job that you can’t continue working and contributing to your pot. This way, your pension will generate more income for when you really need it.
Consider giving your pension a little bit of TLC. For further guidance on your pension options, get in touch – 01633 987070