Your pension is a key part of planning for later life. By giving you a source of income when you are no longer able to work, a pension gives you the security to make the most of your later years. Most people will have a pension of one form or another, usually set up by your employer with deductions coming out of your wages directly. This is a good start but it may not be enough.
While it is tempting to leave your pension alone and assume that it will be fit for purpose, it pays to take a closer look. You may discover that your current pension will only provide you with a meagre retirement income. Maybe it’s enough to survive but will it be enough to enjoy life? Don’t worry if this is the case. With a little planning, there are several ways that you can increase your pension pot and give yourself a more enjoyable retirement.
The first option is to delay the date that you start drawing your pension. While you may initially recoil at the idea of retiring later than you had planned, it can be a great option in the long run. People are living much longer these days and, thanks to medical advances, many of us remain fit and healthy well into our 60s and 70s. Retiring in your early or mid-60s is great if you can afford it, but bear in mind that your money might have to last another 30 years. By working for a few more years, you can put more into both your savings and your pension pot, giving you a better quality of life when you retire.
Manually Top Up Your Pension
The second option is to manually top up your pension pot, either by adding to an existing scheme or starting a new one. This is a great option if you have unused savings. With current interest rates so low, putting some of your savings into your pension pot may be a wiser choice than leaving them to sit in your bank account.
Seek Professional Advice
Finally, and perhaps most effectively, you can use a private pension advice service. A pensions adviser can help you to weigh up your options and choose an approach that is right for you, based on your financial circumstances and your plans for retirement. Contact our pension advice service today and let us help you make the most of your retirement.
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