New Year, New Pension Goals
The start of a new year can offer a perfect opportunity to reflect on what has happened in the past and what we would like to happen in the future.
It is important to ensure that we spare even just a few minutes to review our pension pots and take action if necessary. Regardless of whether retirement is imminent or still decades away, taking time to review your pension could mean the difference between having a comfortable retirement with no nasty surprises, or having to work for longer, or receive a lesser pension.
There are several steps you can take to make sure your pension is on the right track:
- Use My Pension+ to review your pension figures – Looking at your most recent pension figures can offer you an insight into whether your pension pot is as expected. By working out where you currently are, you can make plans on where you would like to be.
- Use My Pension+ Retirement Planner to see if your figures are on track – Using this projector can allow you to input different figures to assess whether your pension will cover your costs in retirement. Whether you like to spend on home improvements, holiday funds or lifestyle and leisure, you can see how far your money will go and if the pension you are on track to receive is enough to cover your outgoings.
- Consider paying more or less towards your pension – Weighing everything up, you may decide to pay more or less into your pension. There are two flexible options to boost your pension, APCs and AVCs, which vary, with both offering unique benefits. Alternatively you might decide to scale back on your pension payments with 50/50, which allows you to pay half the contributions to build up half the pension.
- Review your death grant nominations – In the event of your death, a tax-free cash lump sum may be paid to a person or organisation of your choosing. It is important to consider who you would like to receive your death grant and ensure that we have correct and up-to-date details on file. You can view and update your death grant nominations via My Pension+ or by completing an Expression of Wish form available on our website.
- Find your lost pensions – It can be easy to lose track of what pension pots were paid into and when. Seeking out any previous pensions you hold may give you a better idea of what your overall finances will look like in the future. If you know the name of the scheme or suspect you may have had a pension with a previous employer, you can contact them directly to enquire about any pension you may be due. However if you don’t know the name or can’t make contact, you can use the free, government-led Pension Tracing Service.
- Seek financial advice if you need it – Pensions, and finances in general can often feel overwhelming. Our staff are on hand if you have a query related to your NESPF pension, and there are several ways to contact us. If you are struggling with your other finances or need expert advice, there are many organisations out there offering support including MoneyHelper. Alternatively, if you are looking for personalised financial guidance, an independent financial advisor may be able to assist. You can find out more about obtaining an authorised financial advisor with the Financial Services Register.
