A recent study found that of those who made a New Year’s resolution, 66% failed within the first month.
And it’s easy to see why. Resolutions like staying away from chocolate or hitting the gym need you to avoid temptation and have self-discipline.
But financial resolutions are easy to turn from a short term goal into a long-term habit. When it comes to your workplace pension, once you set your goals, you can get on the right path not just for one year but for decades into the future.
Here are three easy ways to make a start:
#1. Invest a little more in your pension
Log in to your pension plan to see how much your company pension is worth right now. You can then use the Pensions Calculator to see how a small increase in your contributions could add up to a big increase in your pension over time.
Not only is this easier on your pocket, but it can lead to a dramatic difference in your pension pot.
Find out how to make an increase to your contributions by contacting your HR or payroll department. If you haven’t registered to view your pension account online yet, call us on 0117 314 1795 for a PIN. Remember, once held in a pension, your money is no longer accessible until age 55 (rising to 57 in 2028).
#2. Bring your pension pots together
The average UK worker stays in a job for only five years. So, like many, you may have a number of pension pots with different employers.
If you’re struggling to keep track of all your pensions, you could use the New Year as a good excuse to have a tidy-up. Track down old paperwork with details of old pensions or use the Pension Tracing Service. And then consider combining all your pensions into one pot to make keeping track of them easier. It’s easy to do so from your online HL account (once you’ve registered) and we’ll do all the transfer legwork.
Before transferring you should check you won’t lose any valuable guarantees or incur excessive exit penalties. Pensions are usually transferred as cash, so you’ll miss any market rises or falls for a period.
Find out more about transferring your pension#3. Review your investments
If you’ve never looked in detail at your pension before, it’s likely you’re contributing each month into an investment which has been chosen as the default fund for your pension scheme.
Why not take control of your pension and your future by making the decision of where to invest yourself? This could make your pension grow faster, because the better your investments perform, the bigger your pension pot. Of course, all investments can fall as well as rise in value so you could get back less than you invest.
Whether retirement is just around the corner or many years away, there’s likely to be an investment choice for you. Start exploring your options now – the ABC Funds may be a good place to start.
Any questions?
If you need to talk through your options through, give Hargreaves Lansdown a call. Our helpdesk will be happy to help. Just call 0117 314 1795 or email invest@hl.co.uk
If you are not sure of the suitability of an investment for your circumstances, please seek advice.
We’re here to help you save and invest with confidence through 2018, and beyond.