By Christian Abbott
Copyright birminghammail
Today (Monday, September 15) marks Pension Awareness Day, with millions of UK households being reminded to review their retirement savings. New research from Scottish Widows has revealed that one in four people are risking falling into poverty in old age, as they’re missing their pension targets. Indeed, more than half of adults have done little or nothing to investigate how much they need to save for later life. Read more: State pensioners who retired before 2016 sent £2,900 warning Robert Cochran, a retirement expert at Scottish Widows, said: “Retirement planning is much more than simply putting money away for the future. “Tracing old pensions, setting up additional investments to support retirement funds, and thinking about how and where you want to spend your twilight years are all important aspects that can’t be overlooked.” More than one in four have given no thought to what lifestyle they want in retirement. Meanwhile, one in five are unsure how they will fund their later years. Scott Gallacher, Director at Leicester-based Rowley Turton , says whatever you do, do not delay: “Join your workplace pension, or start your own — but do it today. “Tomorrow is already a day behind, and even small steps now can make a big difference later. Balance enjoying today with keeping an eye on your future by paying into a pension. “It’s not all or nothing, but you don’t want to hit old age with only the state pension to support you. Many people forget about old pensions from previous jobs, but even small pensions can add up, so be sure not to lose these as they can make a big difference. “And don’t forget to update your expression-of-wish forms to ensure your loved ones benefit should the worst happen.” Philly Ponniah, Chartered Wealth Manager and Financial Coach at Philly Financial , said write a letter to yourself from you aged 65: “The biggest pension mistake I see is people treating their future self like a stranger they’ll never meet. “The magic happens when people connect their money decisions to how they actually want to live. Your pension isn’t just a pot of cash: it’s freedom, it gives you choice and it lets you live the lifestyle you actually want. “Start by writing a letter from yourself at age 65. What does that person wish you’d done today? This simple behavioural exercise transforms pensions from boring numbers into your actual future life. “Other quick wins are to increase contributions by just a few % annually: you won’t really feel it, but compounding will grow it over decades. “If you’re employed, check if your workplace matches contributions and take advantage of that free money. Remember, you also get money from the government for your contributions. “Business owners should consider maximising pension contributions before year-end to reduce corporation tax while building towards their future.”
