Whether you’re near retirement age or just beginning to think about your future financial security, making some changes to your retirement saving now can bring big rewards later.
To mark Pensions Awareness Day, the experts at PensionBee have put together five easy ways to boost your pension pot:
1. Consolidate your pensions
Nowadays, people often have several pension pots that are left behind every time they change jobs and scattered across different providers. To fix this, tracking down old pensions and consolidating them can be a good first step to getting on top of your retirement savings.
The benefits of consolidating pensions include a better return on investment and a welcome boost to your pension pot. As well as making them easier to manage, any administrative fees can also be reduced by paying just one single management free.
2. Downsize your property
Downsizing is the perfect way to boost your pension. And new research* from PensionBee reveals how downsizing in the UK could unlock up to £417,881 of savings ahead of retirement.
Romi Savova, CEO at PensionBee said: “Our research shows the considerable amount of money that could be tied up in your home. Given the stamp duty holiday there’s arguably been no better time to downsize, especially if you’re approaching retirement and looking to grow your income.
“Increasing evidence suggests that the majority of us aren’t saving enough for retirement, and where it might not be possible to make larger pension contributions, property can help bridge the gap. As our data indicates downsizing could release a significant sum, right across the UK, so it’s something that could be worth considering if you want to boost your retirement fund.
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3. Delay taking your pension
Life expectancy is increasing, so leaving your pension untouched can bring great benefits in the long-term.
Choosing to stay in employment and paying into your pension keeps your money invested, and means it has longer to grow -boosting retirement savings. This can lead to higher personal pension payments later in life, which can be used to supplement the increasingly paltry State Pension.
4. Increasing your personal contributions
Increasing pension contributions brings an immediate boost which can aid compound interest and fuel longer-term investment growth. During lockdown, research by PensionBee indicated that consumers were changing their financial habits,with those who could afford to make larger contributions saving significantly more in April.
5. Maximise your employer contributions
Check with your boss about the details of your pension plan as some employers increase the amount they pay into your pensions when you increase your contributions. This is usually up to a certain limit but it can be a welcome boost to your pension pot.