Britons urged to look at key document for saving for retirement

Pensioner surprised to find she'd lost a pension

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A survey undertaken by Penfold has revealed a “pension crisis” with many people unaware of their savings. The company found 58 percent of those asked do not know the current value of their pension.


Awareness was found to be lower among older savers, with 65 percent of those aged 55 to 64 saying they aren’t aware of the value of their pot, compared to 55 percent of those aged 25 to 34. 

As these individuals are imminently approaching retirement, this is concerning, as they do not have a perception of how much they have saved and what lifestyle they can expect.

Many find it difficult to save into a pension, and to keep track of it once they have started saving.

To find a solution, spoke to Pete Hykin, co-founder of Penfold, who shared his guidance, pointing towards a key document which may hold the key to success.

He said: “I would urge anyone unsure about their pension to speak to their current employer, as they will be able to explain who the workplace pension provider is, how much you and they contribute to your pot, and how you can access further details around it. 

“Your payslips should also provide this information.”

Mr Hykin highlighted how it can be difficult to stay on top of one’s pension savings as time goes by.

The average individual has 11 jobs across their lifetime, and each of these roles could come with a separate pension.

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As a result, the expert recommended combining some or all of one’s pension pots to help stay on top of savings. 

People should always be aware of the benefits and drawbacks of consolidation, as it might not be suitable for everyone.

Mr Hykin also stressed the importance of setting goals for later life.

This can be done using a pension calculator where a person can work out how much they should be saving.

The expert continued: “By entering a few key details, such as your age, yearly earnings, and current pension value, you can get a personal recommendation on how much to put away to enjoy a comfortable retirement. 

“Some providers, including Penfold, also offer a bonus for referring a friend, to help you to top up your pot.”

As a third step, Mr Hykin suggested increasing one’s contributions over time.

Pension saving can often positively snowball to create a substantial pot, and so putting enough away for retirement has benefits.

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Finally, Mr Hykin also encouraged Britons to check if employers will match contributions through one’s pension scheme.

An employer contribution can often serve as a helping hand in progressing towards one’s savings goals.

Making decisions on one’s pension is a serious matter as the implications can last for decades.

As a result, people are usually urged to seek financial advice or contact the Government’s PensionWise service for free guidance. 

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