Map your route

Start at the end of the journey: your retirement. Where are you now and where do you want to be when you wave goodbye to work?

HOW LONG IS THE JOURNEY?

There is no set state retirement age and ideally, the government would like people to stay in paid work beyond state pension age if they can. Check when yours will kick in at gov.uk/state-pension-age. You may have selected a retirement date for any workplace or private pension scheme when you joined them but, in reality, the age you retire will be influenced by many factors, including your health, finances and type of work. No matter how long you have to build up your pension, whether you’re in your 40s or 60s, any steps you take now will be of benefit.

HOW BIG IS YOUR PENSION POT RIGHT NOW?

Only 29% of women have a clear idea of what all their pensions are worth (compared with 44% of men) and a worrying 72% of women have no idea of how their pension is performing (compared with 51% of men), according to financial services firm Hargreaves Lansdown. Checking is easy…  State pension The full state pension will be £179.60 a week from April 2021, but the amount you will get will depend on how many qualifying years of National Insurance contributions you have by

the time you retire – normally, you need 35 years to get the full amount. Check how many years you’ve clocked up at gov.uk/check-national-insurance-record. If you’re short, it might be possible for you to pay voluntary contributions to top it up. Find out how much you’re on track to get at gov.uk/check-state-pension. You’ll have to prove your identity at the start – easy if you do an online tax return or have a gov.uk ‘Verify’ account. If not, it’s easy to create a Verify account (signin.service.gov.uk/prove-identity).

Aged 67 or over? ‘All women who come under the old state pension system should be checking if they are on the right amount,’ says Steve Webb, partner at consultants LCP. ‘Many thousands of married women are not getting the “married woman’s rate” to which they became entitled when their husbands turned 65, and there are also widows and

divorced women on the wrong rate. Some of those on the wrong rate have been paid thousands of pounds in back pensions, so this is well worth checking.’ You can check here: pensionunderpaid.lcp.uk.com.  Workplace and personal pensions

You can check your estimated pension income (at your chosen retirement age) using the latest annual statement from your provider(s). Can’t find it? Request a copy or register online to keep track of your pensions more easily.

HOW MUCH DOES IT ALL ADD UP TO?

To get an idea of the kind of annual income your pension savings might generate when you retire (based on the current value of your state, workplace and personal pensions), use the moneyadviceservice.org.uk/en/tools/ pension-calculator. It should help you work out if you’re on track or need to put your foot on the accelerator.

 Get a free midlife money MOT from the Money and Pensions Service (yourpension.gov.uk/mid-life-mot), your financial adviser, or, if you are over 50, Pensionwise (pensionwise.gov.uk). The average pension pot for women is about £50,000 for those aged 55-64, compared with about £213,000 for men, according to the Wealth and Assets Survey**.

SHOULD YOU COMBINE PENSION POTS?

If you’ve changed employers, moved house or have lost track of a pension somewhere along the way, it’s a good idea to double check. Around 37% of us think we have at least one missing pension pot, according to research from Pensionbee. If you have the name of your employer or pension provider, track it down at gov.uk/find-pension-contact-details. If you have several small pots, you may be better off consolidating them to reduce fees and keep track of your savings, but make sure you’re not giving up any guaranteed benefits with existing plans. It’s generally considered a bad idea to transfer out of a defined benefit scheme.  Talk to The Pensions Advisory Service for free on 0800 011 3797 before making any transfer decision or speak to an Fca-authorised financial adviser who specialises in retirement planning. Find one at moneyadviceservice.org.uk, unbiased.co.uk or vouchedfor.co.uk.