Skip to Main Content

Growing my pension

A lot of people find that when they work out their estimated retirement income, it’s not as much as they were expecting or would like to fund their desired standard of living.

But by taking the time to look at that estimated pot now, you can make the necessary small changes to achieve the retirement that works for you.

Remember that you are entitled to a state pension when you retire and can enjoy benefits such as travel discounts, which all helps. By preparing and thinking ahead now, you can work towards a retirement you can look forward to without any anxiety.

You can change the amount you contribute

The more you put into your pension fund, the more income you’re going to have when you retire. So if you find yourself with earnings each month that just sit in your current account, they could be working much harder for you if you transferred them into your pension fund.

Some people look to pay off their mortgage as a priority and so neglect their pension, but it’s worth considering a plan that allows you to balance both. You may also want to consider putting more into your pension rather than assuming your savings, investments and/or ISAs are the best place/s for your money. If you check the rates that you get with each of these options, you can make sure you allocate your money cleverly to get the most back in return in the future. 

The same goes for any other pension pots you might have. If you check their balances and the rates and fees that they charge, you can then move funds around to maximise your future retirement fund.

Opportunities to increase your contributions

While the above examples show effective changes you can make to maximise your retirement fund, don’t forget that even the tiniest of changes can make a big difference in the long run. Let’s say, for example, that you cut out just one £2.50 takeaway coffee and £3.80 shop-bought sandwich a week from your lifestyle. It’s a small change to make day-to-day, but in 10 years you could have saved a huge £3,276.

You can change the length of time you save for

The longer you save for, the more time there is for your fund to grow. So you should start saving as soon as you are able to.

You might also want to consider changing your retirement date and not withdrawing too much when you reach 55 just because you legally can. Beyond this age you’re likely to have plenty more years to live and work, meaning more time for pension increase through tax relief and employer contributions.

You can change the way your fund is invested

When you join NEST your money is invested into a default fund, as will likely be the case with any other pension pots you might have. This is generally the most suitable fund for most members. However, you are able to transfer to another fund to match your religious beliefs, ethical choices or level of risk. 

You may also want to consider changing your retirement date as the further away from retirement you are the higher growth focus your fund gets by default.

You can change your approach to investment simply by logging into your online account.

It’s never too late

You’re not alone if you feel that you haven’t done enough to secure the future you want. The good news is that it’s never too late to change your situation. You can still make a big difference to your future.