Taking a few minutes to review your pension could lead to a substantial difference in your retirement funds. MoneyMagpie highlights seven key checks that may help individuals find missing savings, unlock employer contributions, or prevent unnecessary charges from reducing their pension pot.
One important check involves employer contributions. While a minimum contribution is standard, some employers may match additional employee contributions up to a higher limit. Individuals could be missing out on part of their employment package if they are contributing below this matching limit.
It is also possible to lose track of old pension pots when changing jobs or moving house. The free government Pension Tracing Service can assist in finding contact details for former workplace or personal pension schemes. Additionally, understanding what your pension is invested in and the charges applied to it are crucial, as even small percentage charges can accumulate over many years.
Further checks include ensuring your pension beneficiary nomination is up to date, checking your State Pension forecast, and evaluating the impact of increasing your contribution by one percentage point. The precise impact of increasing contributions depends on factors such as salary, tax band, and the scheme's payment method.