News & Views

How much do you need to be comfortable in retirement? 12 Top tips to build a larger pension fund

6th March 2018

More than you think? People are living longer (with help from Jennifer Hill of Capitol Hill).

“Men in England and Wales can expect to live for almost 19 years from age 65 and women for more than 21 years. In simple terms this means that to raise a desired income of £1000 per month on top of the State Pension, men would need to build up pension funds of £228,000 and women £250,000.”

Two thirds of savers say their biggest concern is running out of money in retirement.

Our top 12 tips to help you build a larger pension funds are:

1.       Take control and advantage of new pension freedom.

Making savings into pensions has never been more attractive. The new freedoms give you control as to how to manage your pension and draw your income.

2.       Start investing early.
Save regularly and as soon as you can and as much as you can. This will give you the best chance of financial freedom in retirement. Put more in each year.

3.       Join your employer’s pension scheme.
Speak to your boss – by law they must provide and contribute to a pension scheme.

4.       Asset allocate properly.
Cash can be useful but a diversified portfolio of assets such as equities can reduce risk and grow your capital and address inflation.

5.       Consolidate pension pots.
You may have accumulated pension pots with different employers. Sometimes it makes sense to combine these so you can see more easily what charges you are paying and how your funds are doing. Expert advice is needed here as often older pension plans offer valuable pension guarantees

6.       Reclaim missing assets.
There is an estimated £5 Billion in lost pension funds. The can help you locate any lost pension you may have. Also double check you have claimed all the tax relief you are due. You may be due a refund.

7.       Regular pension check ups.
Not negotiable – a few minutes can save you thousands of pounds!

8.       Pensions for Spouses and Children.
Pension savings for non-earners or children – £3600 per year (£2880 net).

9.       Continue contributing to age 75.
You can still pay into your pension after you stop work.

10.   Get a State Pension forecast.
Go online – Government Gateway and get a state pension forecast – how much and when.

11.   Bring forward pension allocations from previous years.
Make sure you know the maximum amount you can pay into your pension, especially as you get close to retirement. The annual allowance for most people is £40,000 and you can carry forward any unused  pension allowance from the previous 3 years

12.   Seek independent advice from a professional.
Invest some of your time with a pensions professional to check your affairs are in good order and up to date (they possibly won’t be), build a proper plan and review this at least once a year.


If you would like to discuss any of the above then please get in touch. You can speak with one of our consultants (without obligation), just make an appointment to suit you.



Important information and risk factors:

Stock market investments and any income from them can fall as well as rise and investors may get back the amount they invested. Changes in the rate of exchange may cause the value of investments to go up or down.

Current tax reliefs and rates, and the treatment of pensions may change. The value of any tax benefit will depends upon the investors individual circumstances.