Don’t Sleep on It: Why checking your workplace pension matters

Your workplace pension is a crucial element of planning for a secure retirement. However, many people neglect to check their pensions regularly. This can be a big mistake! Here’s why checking your workplace pension matters.

1. Monitor Performance and Risk:

Your pension is likely invested in various funds. These funds can fluctuate in value depending on market conditions.

You may have been put into a default fund when you joined the scheme. This fund may not match your attitude to risk or expectations.

Regularly checking your pension allows you to see how your investments are performing. Are they tracking your expectations? If not, you might need to adjust your risk tolerance by choosing a different fund mix.

2. Make Informed Decisions:

Many workplace pensions offer a range of investment options. Understanding your options empowers you to make informed decisions about your retirement savings. By checking your pension, you can see what contribution levels you’re currently on and explore if increasing contributions might benefit you.

Is my workplace pension any good?

3. Catch Errors Early:

Unfortunately, mistakes can happen. Checking your pension statements ensures you’re receiving the correct contributions from both yourself and your employer. Early detection of errors can save you the hassle of rectifying them later.

4. Plan for the Future:

A clear picture of your current pension pot allows for better retirement planning. Knowing your projected retirement income, you can identify potential shortfalls and take steps to address them. This could involve increasing contributions, delaying retirement, or exploring additional savings options.

When planning, remember any state pension entitlement.

Check your state pension age here

5. Peace of Mind:

Regularly checking your pension fosters a sense of control over your financial future. Knowing your retirement savings are on track offers peace of mind and allows you to focus on other aspects of your life.

Taking Charge:

Checking your workplace pension doesn’t have to be complicated. Most pension providers offer online portals to easily access your statements and investment details. Remember to review your pension at least annually or more frequently if significant market changes occur. Remember, a little effort now can make a big difference to your financial security in retirement.