At now:pensions, we’re supporting this year’s Pay Your Pension Some Attention campaign, encouraging people to take an interest in their pension savings and seeing how they can improve their future.
Alongside the three steps the campaign highlights — find lost pensions, log in and check your accounts, and think about how much money your future self might need once you’re retired — we’ve identified five ‘life moments’ when it can make sense to pay extra attention to your pension.
- Getting a new job
When you start a new job, have a good look at the workplace pension you’re offered, including how much you pay in and how much your employer pays. Make sure you’re paying in enough for your personal situation.
- A change to your finances – like a pay rise
If you get an income boost – like a pay rise or bonus – can you make the most of it by paying more into your pension? Remember, you don’t normally pay tax on money you put into pension savings. Your savings will grow faster if you pay in more each month and can help secure your retirement.
- Getting married or divorced
Remember your pension if you get married or divorced, or form or dissolve a civil partnership. Do you want to change the amount you pay in? And don’t forget to update your expression of wish form to pass your pension savings on to the people who matter to you, if you die.
- Welcoming a new addition to your family
Depending on how your workplace treats parental leave, the amount you pay in to your pension could go down while you’re away from work caring for your new arrival. Our research with the Pensions Policy Institute found that women who have children can expect to have their career interrupted by around 10 years, resulting in an average of £39,000 in lost pension savings. It’s important for everyone to be aware of how parental leave and time away from work can affect your pension saving. Talk to your employer about your options —it could help protect you from ending up with a gap in your pension savings.
- Moving home, or buying a home
This can be exciting, but also stressful. Finances may be tight, but it’s important to keep saving towards your pension if you can. If you do need to temporarily pause paying in to your pension, set yourself a reminder to restart once your finances improve.
Most importantly, make sure all your pension providers have your new address – because that’s how pensions can get lost!
In it for the long haul
Finally, remember pensions are a long-term investment. Slow and steady wins the retirement race. Even small amounts, if you pay them regularly, can build up over time.
For many people, the biggest impact on how much they can save for retirement will come from changes at government level. That’s why now:pensions campaigns for the UK’s underpensioned groups and pushes for policy changes. By staying informed and taking action when you can, you’ll be able to make better decisions to help you reach your pension saving goals.
