Pension saving, though, is often vital for many Britons to secure the comfortable retirement they are dreaming about for later life. Many have ambitions and goals for their retirement, and setting aside the correct amount of money to achieve this is key. Saving into a private pension is often an option which is selected by many, who end up using the State Pension system provided by the government as a safety net.
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However, one pension expert has revealed now is the time to get serious about savings, and put the issue at the top of the agenda.
Express.co.uk spoke to Michelle Gribbin, Chief Investment Officer at Profile Pensions, who stated the lockdown measures across the country could provide the opportunity for timely contemplation.
She said: “At the moment it is more important than ever to review your pension. It is often easy to have an element of complacency.
“It usually comes in the form of ‘I don’t understand’ or ‘I’m frightened of the results’, so many people choose not to do anything about it. Either that or ‘I’m busy with other things’. Many people are homeschooling, working from home or have lost their job.
“It is very easy to put things on the back burner, but actually this is a top priority, because making sure that your fund is in the right place now could help out how that recovers, and as a result how your future is shaped.”
Ms Gribbin acknowledged it was also important for savers to consult advice to ensure they are accessing their pension in the right way, and have suitable plans for the future.
She also identified what she described as the “false economy” of workplace pension savings, which, if not remaining aware, could prove a problem later down the line.
She added: “Another false economy for people is that we have workplace pension schemes, which means people probably feel quite secure.
“This is because they get a pension their employers are paying into. But if you look at the amounts that go into those pensions, it can be a little bit misleading.
“It is fair to say that to put the minimum levels in is unlikely to give you anywhere near the income that you currently get.”
While the effects of COVID-19 emphasised the need for pension planning, Ms Gribbin also said it is never too early to make a plan.
She concluded: “Make plans for your retirement now. It doesn’t matter whether you are two years before retirement, or twenty years before retirement.
“You still need to plan. It is important to plan, and it is a really good time to do that.”
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The Money Advice Service has also provided Britons with further information surrounding pension planning and looking forward to the future.
Ahead of retirement, Britons should be assessing their likely retirement income.
This involves getting a State Pension forecast, adding up savings and investments, and tracking down any lost pensions.
All of these streams of income can add up to provide a comfortable retirement income.
The service also states it potentially makes sense to gradually move money to lower-risk investments in the 10 years before a person retires.
This ensures risks are not taken with the pension pot, and secures retirement.
The government advises people to take significant pension advise before retirement, and this can be done through a provider, such as Profile Pensions, or alternative methods of research.
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