Six Small Steps To Instantly Reduce Your Pension Stress

Investing in your future is hugely important but that can sometimes make it seem very daunting, especially if your pension is not something you’ve given too much thought to before. Financial worries and planning for the future are very real sources of stress for many, but it doesn’t have to be this way.

While it can be easy to be overwhelmed, it’s important to remember that you don’t need to ‘fix’ everything today or solve all of your concerns overnight. But by taking some small, manageable actions, you can reduce your anxiety and increase your sense of control – as well as help make a positive impact on your financial future.

Step 1: Check in with your pension (even if it’s only once)

You might be saving into a workplace pension right now – but have you ever checked in with it? The best way to remove the sense of unknown you might have surrounding your pension is to take a look for yourself.  At TPT, you can access your pension directly using your online account. If you’ve not logged in before, it’s easy to register. Once you’ve logged in you can see exactly how much is in your pension pot, as well as check your personal details, your contribution rates and more. There are even planning tools to help you to see what type of retirement income you could be on track for. Any projections or planning tools are for illustrative purposes only and are designed to help you understand possible scenarios, not to provide financial advice. Most pension providers offer a similar online service so be sure to check-in with any other pensions you have too!

Step 2: Check your details to avoid missing out

A simple step that you might not have even considered – are your pension details up to date? In your TPT online account you can update your address and contact details, so you don’t miss out on anything important. If you’ve got any other pensions, it’s worth doing the same, especially if they were with jobs you left a long time ago. If it’s been a while since you’ve checked in, you might find they’ve been sending important post to an old address or trying to contact you using and old work email address that you no longer have access to. Updating these details will ensure you don’t lose touch with your pensions and that you are kept up to date with any important changes, as well as things like annual benefit statements.

Step 3: Name a Beneficiary

Naming a beneficiary is an important step as this helps guide the Trustee when deciding  who your pension should be paid to should the worst happen. It’s really easy to do but could go a long way to making things more straightforward for your loved ones in the future – another weight off your mind. With TPT, you can do this in your online account and many other pension providers let you do this online as well.

Step 4: Check your contribution rates

Now that you’ve logged into your pension account you can see how much you’re  currently contributing and start to build a clearer picture of how your pension is shaping up over time. This information can help you understand where you are now, how your savings are progressing for the future and how they may fit with the type of lifestyle you’d like to have in your retirement. You may already be contributing as much as you feel comfortable with but if you feel you could afford to pay a little bit more each month then get in touch with your employer about increasing your contributions. Depending on your employer, they may even increase their contributions as well, giving your pensions savings a further boost. Different employers have different contribution-matching rates so make sure you check this before making any changes, just so you know what to expect.

Step 5: Find any lost pensions

Now you’ve checked in with the pensions you remember, are there any you might have forgotten? It can be all too easy to lose track of old pensions, especially if they are from jobs you had a long time ago. If you think you remember the provider they were with then give them a call or send them an email and they’ll be able to help you. If you think you had a pension with an old job but have no idea who it was with, why not try simply calling the company you used to work for? They should be able to provide you with the details, so you know which pension provider to talk to. If you want some more help, the government has a free tracing service specifically to help you find details of a lost pension. There’s also The Pension Tracing Service that helps you to locate lost pensions and offers advice on what to do with it if you find it.

It can be a bit daunting getting in touch with large organisations or old employers but taking the time to track down your lost pensions will make sure that you’re not missing out any vital income that you’re entitled to in your retirement.

Step 6: Set a ‘Pension Check-In’ Reminder (Once a Year)

You’ve taken a look at your pension – and that’s great! But it can be easy to slip into old habits. To make sure you’re never too far out of the loop with your pensions why not set an annual pension ‘check-in’ reminder in your calendar - that way you won’t have to remember to remember to check in with your pensions. By making sure you do this every now and then, even if it’s just once a year, you can normalise your pension and help prevent your pension anxiety from building up too much again.

Remember that if you feel overwhelmed or bamboozled by your pension, you are not alone. It’s easy to feel like you should be doing more when it comes to your pension. But the truth is, taking even one small step today is more powerful than avoiding it for another year - and by looking after your future finances, you can also look after your present mental health. You can also find free and impartial guidance from MoneyHelper, which offers support on pensions and retirement planning.

Why not pick one step and give it a go today? You may be surprised by how straightforward it is and how far a little bit of clarity can go to empowering you financially and lifting a burden from your shoulders.

This information is for general guidance only and does not constitute financial advice. Individual circumstances will vary.