Talking about your pension can pay dividends
NO matter how far away your retirement, it’s important to get to ‘know’ your pension – and ask for help in making choices about your life savings.
Here, Jamie Jenkins, head of global savings at Standard Life, tackles three common questions:
■ How do I know how much I need to save for the future?
WHILE the state pension is a good start, it’s unlikely to give you the lifestyle you might have in mind. Taking steps to boost your retirement income now, perhaps by increasing contributions to a private or workplace pension, means your ‘future self’ will thank you.
Essentially, people may need to accumulate a pot of cash to last what could be 30 years or more in retirement. To check you are on track there’s a range of online tools and calculators or get professional advice.
■ At what age can I start to take money from my pension?
WHEN and how you take money from your pension is a big decision – it can affect how long your pension pot lasts. At the moment, the state pension is generally payable when people reach their mid-60s.
But that is rising to 67 between 2026 and 2028.
You may be able to take money out of your private pension from age 55. But, before you take any, consider if you really need to.
■ How can I track down any pensions I might have lost?
THERE are an estimated
1.6 million lost pensions in the UK, worth around £20bn. All you need is the name of your employer or pension provider to track down a lost pension – or use the UK Government’s online Pension Tracing Service.
If you’ve found a lost pension and want to make it easier to take control of your savings, you might consider consolidating all the pension pots into one. Your provider will give more information on things to consider.
Speak to an expert to get information on your situation, in case you’re giving up benefits by deciding to combine pensions.