Always Double-Check Your Pensions

Around 75 per cent of almost-retirees aged around 45 have not yet checked the performance of their pensions, indicating that 10 million retirement schemes may put them and their retirement funds at risk.

According to insurer Aviva, retirees might lose track of inflation and other factors that can affect their pension value.

“People need to monitor their pension every year to make sure it’s on track. If you don’t, you could reach retirement and only then realise there’s a shortfall,” warns John Lawson at Aviva

The consequence is that retirees not checking their pensions could be forced to continue working for much longer way past their retirement.

One way to check your pensions is through the pension Tracing Service, which keeps record of all pension scheme members. The Pension Tracking Service will allow you to have your national insurance number and details of contribution from companies where you’ve been employed.

It also helps to consolidate your pensions into a single one that allows easier and faster monitoring. With the new pension freedoms, you might want to move your savings to better funds appropriate for your situation. Again, it is imperative that you understand more about your pensions before engaging to move them in other accounts.

Also, be wary of the details that you would need to understand, such as your guaranteed risk, which may change in value over time.