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What’s your key resolution this year”¦ healthy eating, losing weight, seeing more of family and friends, finally clearing out your wardrobe?   

Sorting your pensions often features somewhere on the list however despite good intentions, people often don’t know where to start and find the whole subject of pensions daunting, so it remains unachieved for another year.  But hey, retirement’s a long way off – there’s no great rush, right?

Wrong!  There are huge advantages to getting on top of your pensions as early as you can in your career.  Delaying can be costly indeed.

A closer look at the figures

For example, if at age 35 you start to put £250 per month into your pension – using a growth rate of 7% and assuming 1% charge – it will be worth £251,405.30 when you reach age 65.

But delay just 5 years and the impact is startling.  Start at age 40 and the fund will be worth £76,936.12 less.   Wait until you’re age 45 and it will be worth £134,427.15 less.   That 10 year delay means your fund is more than 50% lower – effectively a 50% cut in your retirement income. (source: unbiased)

The earlier you start to plan for retirement, the bigger the benefit of compounding of investment growth, as your funds have longer time to grow.

Additionally, consumers are often in inappropriate or poorly performing pension funds, or paying high levels of charges – both of which can significantly impact on the value of the pensions the longer they are left where they are.  Further eroding the income you will have in retirement.

So taking immediate action with your pensions could be the best financial decision you ever make.  And by following some simple steps, the process can actually be a lot easier than most people realise, with a number of helpful Government websites now available.

We’ve listed a website below which should help get you started:-

  • It’s also really helpful to get a clear idea what your state pension is likely to be and when it will be paid.   Find this out using the Gov website
  • The free Government service Pensionwise is also a great source of information about different pension options and things to consider.  If you are aged 50 or over you can even get a free 45 to 60 minute consultation over the phone or face to face.

Once you’ve started to build your knowledge you will be in a far stronger position to think about what action you need to take.

How an Independent Financial Adviser can help

At this point you may wish to consult with an Independent Financial Adviser.  They will help you to put a clear plan in place with prioritised actions to ensure you’re making the most of what you have and how you invest for your future.

Navigate Wealth are Independent Financial Advisers who offer advice on Pensions, Investments and Family Protection. Richard Bamforth the firm’s Managing Director has over 30 years industry experience and is a Chartered Financial Planner which is the highest recognised qualification in the industry.

If you would like to have a free initial discussion in relation to your pensions or any other financial matter please contact Richard or one of the team on 0345 340 9690 or email