5 Reasons to Make Your Pension a Priority in 2023

As we entered 2023, many of us will have set resolutions or goals for the new year ahead. We challenge you to consider getting to know your pension as one of these this year.

Despite pensions playing a vital role in our standard of living at retirement, many people have little to no relationship with them outside of receiving an annual statement in the post.

We believe that everyone should have a good understanding of their finances, and being more engaged with your pension is an easy step that your future self will thank you for, and here is why.

Did you know you could be missing out on receiving more money from your employer into your pension scheme? Check your workplace pension scheme rules to see whether your employer’s contributions can be increased, as some are willing to pay more on your behalf if you pay more into the scheme.

Not only is January a great time for reflection, but it also means you have time to maximise the use of any unused tax relief ahead of the April end of tax year deadline. If you have income or capital available, consider contributing this into a pension to take advantage of the generous Income Tax relief available. The government will provide between 20%-45% Income Tax relief on your contributions, which can make a huge difference to your savings for retirement.

You may also have the ability to contribute via salary exchange (also known as salary sacrifice) which creates savings in National Insurance Contributions (NIC), therefore reducing the cost of paying into your pension.

When did you fill out the Nomination of Beneficiaries form for your workplace pension scheme? Chances are that your circumstances may have changed since then.

We do not like to think about death, but it is very important that we are pragmatic to ensure the benefits and assets we accumulate are passed on to loved ones. Simply checking your form can ensure that your wishes are met in the event of your death, and it is made easier now via online tools/apps from pension providers.

When enrolled into a workplace pension scheme, we are placed into a scheme default investment fund. Due to advances in technology and access to policy information online or via mobile apps, many of us are taking a more proactive interest in our investments, driven by the investment volatility experienced in 2022. By actively reviewing your investment approach, you can ensure it meets your individual preferences and attitude to risk, making it your own tailored path to retirement.

Many clients approach us to ask “How much savings do I need at retirement?”. However, we cannot estimate that without knowing your individual circumstances and what you already have in place. Knowing where your pensions are and how much you have accumulated can help you visualise where you are on your journey to retirement, and from there you can optimise your plans to help you reach your goals. If you would like to visualise your goals, we can work with you to produce a Cash Flow Forecast of your income at retirement. Please speak to your adviser if this is of interest.

If you require any assistance in getting to grips with your own pension, please do not hesitate to get in touch with an Integrity365 Independent Financial Adviser on 0117 450 1300.