How to win gold with your pension

It seems that Olympic frenzy has gripped Britain for the past few weeks. And the nail-biting anticipation is back, with the Paralympics now under way.

As a nation we’ve celebrated people performing at the peak of their abilities – both physically and mentally.

Watching, awestruck, at the incredible displays of human achievement.

We have shared the ups and downs: the joy of the victories, the pain of the injured.

And, of course, we’ve witnessed Michael Phelps become the most decorated Olympian of all time.

While you may never experience the thrill of representing your country in the Olympics, you can win gold with your pension.

Yeah, I know, it’s not the same… It is much quicker and easier than the years of training to be an Olympic athlete, though.

A gold medal may be impressive, but you can’t win one from your favourite chair can you? You can arrange to have more money from there, though, and gold is money. With it, you could have the security of having enough money to do more of the things you want to do in the future.

And isn’t that what really matters?

It’s also easier than you might think…

So here are 5 quick tips to get the most out of your pension:

1 PensionTake the free money

Free money? That sounds like a bold claim – and it is. But it’s also true. The purpose of pensions is giving you as much money in the future as possible, and if your company offers a workplace scheme then your employer will probably pay into it as well. And that, my friend, is free money.

2 PensionTrim the costs

The adage ‘you get what you pay for’ isn’t always the case with investing. That’s because you’ll pay an annual management fee on your pension. The higher this fee is, the more it eats into your money – so an expensive pension will need to grow quite a lot each year just to cover its own cost, otherwise you’ll lose money.

As a general rule of thumb, you’ll usually be better off choosing, or switching to, a lower cost option where possible.**

How much better off could you be? Well, just reducing fees by 1% could give you an extra £25,000 in 20 years*.

3 PensionBe generous

To your future self, that is. How so? It’s as simple as putting a little extra away when you can.

I know, I know, you’ve heard that a thousand times before. But because of the way interest works, even saving a little extra can become a whole lot more over time, and reward you in the future.

The fact is that just by having a you’re in a great position, and having the right type will mean that every penny you put in will work even harder for you.

And don’t worry, this doesn’t mean sacrificing everything now for a future that probably feels very distant.

You know what you can afford, and if that gym membership or new TV is within the budget, we won’t tell you not to spend the money.

If you have some extra, though, why not stick it in your pension. The extra contributions will not only make your fund bigger, but thanks to the magic of interest, it’ll grow more over time as well.

And if you’re fortunate enough to land a pay rise, you could take the attitude that this is money you’ve not had before so won’t miss not having it, and put it in your pension.

Plus, if you pay in extra, your employer might pay in more as well. You know what that means?

More free money!

4 PensionThe golden one

If you’ve had multiple jobs over your career, you may find that you also have more than one pension. A lot of people forget they have these older schemes and don’t add any more money to them, so often they stay quite small. That’s especially true if they only paid in for a year or so.

If this sounds familiar, you’ll be pleased to know you have the option to consolidate these various funds into one place.

There are other reasons to consider this, too.

If interest is working on one larger sum of money, over time it could return more money than if it was working on multiple smaller amounts.

Having one pot also means you’ll only pay one fee – and in a modern scheme, that fee is likely to be very low.

Ultimately, by consolidating, you could have one that performs better and costs less than any of your old ones.

Modern, cheaper, and easier to keep track of your money. How’s that for a happy feeling?

6 PensionSorted

Planning for anything can be daunting, and even more so when it’s for a future we know nothing about.

For a lot of us, when something is not familiar territory, we don’t know where to start and in that situation it’s easier to think “I’ll do it next week.”

The trouble is, we still won’t feel any more comfortable about it when next week rolls around.

It’s much easier to tackle the things we have control of already. Your is one such thing – and by taking care of it now you get the lovely feeling of ticking something else off of the to-do list, then sitting back to relax.


Still think it’s daunting? The truth is, small, simple actions really go a long way – you don’t need to become a chartered financial adviser to plan for your future. That’s what we’re here for!

You can get our full, professional advice complete with a recommendation, with no obligation to proceed.

If you do want to proceed? Great! We’ll do all the hard work for you, so you can sit back and relax.


Planting your tree

There’s a wonderful Chinese proverb that says: “The best time to plant a tree was 20 years ago. The second best time is now.”

It’s easy to find out if your pension is already on the podium – or even going for gold.

Just click the button below to download our new, free pensions guide.

You may not be an Olympic athlete, but with a pension that’s going for gold you can still be a winner.


Request your free guide

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*Based on a £50,000 sum at onset, growing at 6% per year before charges of 0.5% and 1.5% are applied

**General guidance only, and a recommendation would be based on your individual circumstances including the size of your pension and the amount you have contributed in the current year.

The details provided in this article are for general information only and are in no way deemed to be financial advice. All of the material is correct as of the publication date, but could be out-of-date by the time you read the article. For our latest information and news, please see our articles section:

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