Take steps to get on track for a rewarding retirement

You may be putting some cash aside for your retirement, but how confident are you that the pot you’re building will give you the sort of lifestyle you want?

A survey found four-in-five people do not feel confident they are putting enough aside for later life. This equates to some 30.4 million working-age people across the UK, according to the report from the Pensions and Lifetime Savings Association (PLSA).

Here are some general tips from Nigel Peaple, director of policy and research at the PLSA, to help with retirement planning.

Enrol in your workplace pension

Consider enrolling in your workplace pension if you are eligible and have not done so already. One of the main benefits of a workplace pension is that your employer has to pay in, too.

It is never too late to start saving

Don’t think it is too late to start saving.

The added benefit of your employer’s contributions, the tax breaks you get from the government, and investment growth all mean that your money will go further than you think.

Make the most of the help on offer

Make use of the support available when you approach retirement. Pension Wise is a free Government guidance service offered to people aged over 50, to help them understand the different options available at retirement.

Bare minimum not ‘recommended’

Don’t assume the amount you are saving into a workplace pension is enough. The minimum workplace pension contribution level is 5%, increasing to 8% next year. Half of the people surveyed thought, wrongly, that this minimum is the “recommended amount”.

Saving more is worth considering

Consider whether you could be saving more for your retirement. Some 34% of people said they could afford to save more towards their pension, increasing to 42% of millennials. While not everyone will be able to afford to, if you can put more into a workplace pension it’s possible you could also benefit from higher contributions from your employer.

Annual statements repay scrutiny

Don’t ignore the annual statement from your pension provider. It is important to read your statements and consider whether you need to take any action – for example, paying in more, updating your expected retirement age, or consolidating pension pots into one with lower charges.

Financial advice can pay dividends

Consider regulated financial advice. An independent financial adviser could help you get the right product or products to suit your needs and help your money go further.

Never hesitate to ask questions

Don’t be afraid to ask questions. If you have questions about your pension pot, such as charges, your scheme provider will be able to help. The Pensions Advisory Service can also offer free, independent information and guidance on pension matters.

Consider access requirements

Think about how you want to access your money in the lead-up to retirement. Only 31% are confident they understand all the options. Deciding what to do with pension savings is a very complex decision, and sometimes you only have one chance to get it right.

Be wary of unsolicited approaches

Don’t fall into a scammer’s trap. Be wary if a company approaches you out of the blue – whether over the phone, by email, or in person – and if they make claims of high returns with low risk, or tax loopholes. If it sounds too good to be true, it usually is.