Is your pension clock ticking?

Hands up if you’ve ever left something to the last minute? Our research1 previously revealed that many Brits put off many life admin tasks every single day, often meaning they are worse off financially. One in five men and women put off paying a bill, and a third receive a financial penalty for doing so. 41% don’t bother to shop around for cheaper gas and electricity providers meaning they are vulnerable to price hikes and being tied in to poor deals. And 27% put off budgeting their money all together1.

Now what about if you put off thinking about your pension for another day, or another year? Possibly until it is too late for you to be able to make the difference you need for a comfortable future…

It’s quite scary to think that 81%2 of people have not given much thought about how much they should be paying into a pension. And 53% of those who do have a pension have not reviewed what its worth in the last 12 months. That feels like a ticking time bomb which could reveal a nasty surprise when you come to retire.

The eleventh hour…

We understand that life gets stupidly busy, and it’s the pressing things in the here and now that demand our attention. Nonetheless, it’s worrying that 45% of over 55’s have given little to no thought about their retirement plans, and that only improves by 10% when people reach State Pension age3.

Leaving your retirement planning to the eleventh hour could mean you have less time to save for your future, and you could miss out on many years of additional contributions, tax-relief and compound interest. All of which could add some serious growth to the value of your pension pot.

Time flies

Yet, why don’t we put the future at the forefront of our minds a lot earlier? Our recent research4 revealed that the top five reasons why people don’t take their pension seriously when they are young enough to do something about it are:

  1. It’s too far away to prioritise (46%)

  2. Lack of education about pensions at school (41%)

  3. Too confusing (32%)

  4. Don’t know who to ask (22%)

  5. It’s too scary to think about (15%)

The time is now

Imagine how you’d feel if someone told you that you could have had thousands more in your pension, if only you’d addressed it earlier? Not great, right?

There could still be time to maximise your pension savings, providing you take action now. Poor performance and high charges could be eating away at your pension pot. Thankfully, it’s easier than you might think to find out how well your fund is performing and what a pension that is properly tailored to you could mean.

Tick tock, pension clock…

If your pension clock is ticking, Portafina can check your pension for you. With our no obligation review you can find out exactly how your current pension is doing and if there is a better scheme out there for you and why. We’d also show you what sort of difference switching could make to the size of your pot in the future.

Most importantly, you can take back control.

We will not charge you a fee upfront to check your pension, which means once we have completed our review you have the option to walk away fully informed. As part of our review we will let you know how much it will cost you should you ask us to act on your behalf. Usually, any fee comes out of your pension so there’s no extra money for you to find.

1Survey of 2,000 UK adults by Portafina in March 2018.
2FCA Data Bulletin, March 2018.
3FCA Data Bulletin, March 2018. State Pension Age, 65. 35% of 65+ year olds have given little to no thought about planning for retirement.
4Survey of 2,003 employed UK adults by Portafina in February 2019.

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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.