National Pension Awareness Week begins on 15 September. Not a date you’re likely to have circled in your diary, but it’s an event that can really help you get to grips with this important part of your financial planning. It’s a time when organisations like Aviva help people get talking about pensions – which can be especially useful for people just beginning to picture what the retirement they want could look like.
It’s probably an understatement to say that many of us are pretty busy in our 40s. Work commitments, family responsibilities, and social engagements can leave little room for long-term planning. And, if you’ve already made a decent start on a personal or workplace pension, it can be tempting to think you’ve done enough for now. But what sort of retirement do you really want?
Paint a picture of what it would be like to retire your way
Freed from the need to give most of your waking hours to paid work, where would you see yourself? Sipping a cold drink on a beach, exploring new cities... maybe spending more (maybe a lot more) quality time with family or friends? Your own vision of retirement is unique to you, and if you bring it into focus you may find it easier to set realistic goals. Your pension is central to this, and for many it will help provide the foundation for financial security in retirement.
How to make sure your pension is working towards the goals you want
- Review your current pension: take the time to understand your pension – or pensions, if you have more than one. What are the contribution rates? Knowing the ins and outs is the first step in checking that your pension is working effectively for you.
- Set clear retirement goals: think about what you want your retirement to look like. How much money will you need to achieve that vision? And how close to that might you be when you retire? Online tools such as Aviva’s Shape My Future can help you get an idea of how much income you might have when you’re retired. Setting specific, measurable goals can help you stay focused and motivated.
- Review your contributions: If you can, consider and review your contributions to see if you can adjust these over time.
- Review your investments: Lots of pensions offer you a choice in the kind of investments within your portfolio. If you’re in this position, make sure you’re still happy with the choices you made when you started your plan. Remember, the value of an investment can go down as well as up. You could get back less than invested.
- Seek professional advice: if you’re feeling overwhelmed, don’t hesitate to reach out for help. Financial advisers can provide personalised advice tailored to your unique situation, helping you make informed decisions about your pension and retirement planning. If you don't have an adviser you can find an up-to-date list of regulated advisers at MoneyHelper.
Your pension’s role in helping build financial security for you and yours
We shouldn’t ignore the part pensions have to play in helping provide financial security. A pension is designed to replace your regular income when you choose to stop working. You could use it for day-to-day spending in the years after work, and maybe also support people close to you.
Why talk about pensions?
During Pension Awareness Week - and other events across October and November that make up what we call Pension Engagement Season - Aviva will be offering people the chance to find out more about the way pensions work, with webinars and fresh insight on this website.
Discussing your financial goals and plans with someone you trust can provide valuable insights and support. You might talk to friends, a partner, family, your employer or a financial adviser. Each may offer different perspectives, knowledge, or even share their own experiences – all of which can enhance your understanding of financial planning.
Talking to someone you trust can also help to relieve any stress or anxiety you may feel about your financial journey, especially when you’re starting to consider exactly what kind of retirement your planning might lead to. Remember, you don’t have to navigate this path alone.
Help to keep the conversation going
Aviva want to help people discover that pensions don’t have to be confusing, scary, or something that doesn’t need mentioning until retirement is on the point of happening. On our Financial Wellbeing Hub, you’ll find links to information and explanations to demystify pensions and understand their role in planning the type of retirement that suits you.
It’s time to talk about pensions!
