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What are YOUR top three questions about pensions? How to find answers and get your savings on track for a comfortable old age
- People want an income forecast, a pot update and a savings check
- But less confidence in making financial decisions after a difficult year
- Afraid that your pension will fall short? Scroll down to find the This is Money to-do list
Half of savers find information about their retirement overwhelming and many don’t know what to do with it, new research shows.
But they say a future retirement forecast and an update on their current pot size are most helpful when planning for retirement, followed by a health check to see if they’re saving enough.
Fewer people are now confident in making financial decisions after a year of high inflation, rising interest rates and volatile markets, according to a Standard Life survey.
Afraid that your pension will fall short? Find the This is Money to-do list below
Pension savers are taking a beating as household bills soar, while investment pots designed to finance old age plummeted – though markets have shown a recovery since the start of the year.
Standard Life found that 72 per cent of the 6,000 UK adults it surveyed in autumn 2022 are doing little to nothing to plan for retirement.
However, it turned out that 93 per cent of people who did plan ahead and retired on £20,000 a year or less enjoy later life, compared to 66 per cent on similar incomes who failed to get their finances in order in advance. to get.
About 59 percent said they were confident about money decisions, compared to 63 percent the year before.
The three pieces of retirement information that people find most useful to have are:
– How much money it will make them when they retire
– How much money is in their pot right now
– How to make sure they pay enough
But 50 percent find the pension information they receive too difficult to digest and 41 percent have no idea what to do with it.
We asked for advice for readers who want answers to the above from Jenny Holt, General Manager of Customer Savings and Investments at Standard Life.
She says, “There are a number of retirement calculators available to give you an idea of how much your pot will bring you when you retire.” (For example, her firm here’s a pension calculator.)
‘If you’re considering buying an annuity, Money Helper’s tool is really helpful, but it’s important to remember that annuity rates fluctuate over time.”
‘If you are not sure how much money is in your pension pot, please contact your provider.
“Maybe you have some small pots, especially if you’ve changed employers a few times. You can use the Public service for tracing pensions to find old pots.’
When it comes to making sure you’re saving enough, according to Holt, it depends on the kind of lifestyle you want in retirement.
She points to the Retirement Living Standards tool, put together by industry group the Pensions and Lifetime Savings Association, as a place to flesh this out – see below.
Need for retirement income for single people. Check out the link above to find out what couples need for a decent old age
“In addition to day-to-day costs, the tool takes into account what is needed for extras — gifts, vacations and major purchases, and the one-time expenses that arise during life,” says Holt.
‘For a more personal view, it’s good to get advice if you can – give it a try Unbiased to find an advisor, or using the Guidance service Pension Guide of the government in the first instance.’
Holt adds: ‘If you’re not sure what to do when you receive information about your pension, the most important thing to remember is that there are plenty of places to go for clarification.
“The first point of contact is to contact your provider, and if the plan has been prepared by your employer, you can also contact the HR team.”