4 pension mistakes to avoid



The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

 

Your pension will probably be the most important savings plan you will ever have, so try and avoid making some of these common pension mistakes.

 

Starting a pension too late

The effects of compound interest mean the earlier you start paying into a pension the longer it has to grow. Delaying by just ten years could mean you’d need to pay in almost twice as much each month to achieve the same amount.

 

Not paying in enough

Use a pension calculator to give you an idea of how much to pay in each month. Try this one from the Money Advice Service.

 

Not reviewing your pension

Every investment should be reviewed regularly, pensions are no exception. An annual review will assess the performance of your pension portfolio and give you the opportunity to adjust where necessary.

 

Opting out of your company pension scheme

Auto-enrolment means your employer must contribute to your pension. Opting out of your workplace pension scheme means you are simply turning down free money!

 

Retirement should be a time when you don’t have to worry about money. To ensure you are on the right track we would advise taking professional advice.