Five tips to help you build healthy pension pot  


    A study by found four in five didn’t know what weekly payments they would receive during retirement, while a further 13% didn’t realise they were entitled to anything at all.

    Almost a quarter of respondents (24%) admitted they’d struggle to locate and access their pension pots, and a further 18% said they had “no idea” whatsoever.

    The study also asked how Brits were planning to finance their future, aside from working one regular job, and traditional methods such as making use of savings accounts (38%) and investing in stocks and shares (15%) were most popular.

    Now is offering tips to savers to help them better understand their options and engage in planning for their financial future.

    Salman Haqqi, personal finance editor at said: “A pension is a vitally important tool for helping provide a stable income in later life.

    “Once people retire, this often forms the majority of their income, so the nine in 10 people who were unsure about their future may want to re-familiarise themselves with the systems, as well as the location of their pension pots and log in details, to avoid any potential issues that could arise in the future.”

    He explained the basic state pension payment was £137.60 per week, which rises to £179.60 for younger workers, as outlined on the government’s website.

    “However, 25% of Brits are missing out on potential further payments in the future as they have opted out from additional personal or workplace pensions,” he said.

    “It is certainly worth assessing your options to provide the right balance between having enough disposable income now, and ensuring financial security in the future.”

    Five top pension saving tips

    James Andrews, senior personal finance editor of, shares some advice

    1. Private pensions – charges and choice

    When choosing a private pension there are two main things to look at – charges and choice. High fees eat into your money, making any returns you make smaller, and over time, the effect on your fund can be significant.Choice of investments is very much a personal matter – some people value the ability to pick exactly who and what they put money into highly, while others would rather let someone else do it for them.

    2. Combine old workplace pensions

    Everyone working in Britain, over 22, and making more than £10,000 a year is automatically enrolled into a pension by their employer, which will top up anything you save yourself.

    You don’t get to choose which pension scheme you’re enrolled in, which means, as you move jobs, you’ll build up a string of old pensions behind you which can be hard to keep track of.

    The good news is you can transfer one pension into another – either your current workplace one or a private pension – if you want to keep things simple.

    3. Check your pension scheme small print

    The age you can access your private pension is set to rise to 57 in 2028 under current government plans, however if your pension scheme says you can access your money at 55, you will continue to be able to do that no matter what year it happens in.

    A word of warning, however, accessing your pension means you can save far less each year and still get a tax break, so if you’re still working you might want to get advice before cashing any money in.

    4. Contribute as early as you can

    The general rule for pensions is to contribute as much as you can as early as possible. That’s because money saved earlier has more time to grow than money saved later.

    So, someone who starts saving at 22, putting 11% of their salary away a year, will generally end up retiring with as much money as someone who starts at 30 and puts 15% away.

    5. You can save too much (to get a tax break)

    There are no limits on pension contributions, and there’s no limit on how much money you can put into your private pension. But there are limits on the tax relief you can get.

    Only the first £40,000 you pay will be tax free and anything above is taxed at your level of income tax.

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