We are five! I said to the squad that I would write a blog this week as we turn five on 4th May.
I’m tremendously proud of who we are as a business and what we stand for. Pensions (and wider financial) engagement is very important to me. The success we’ve had over the last five years indicates it’s also very important to employers and individuals. It’s an area which is becoming increasingly complex and more like a ‘pensions onion’ with so many layers to delve through.
A pension is typically an individual’s first or second biggest asset and yet the time we spend digging into it, understanding it, loving it is not really what it should be. The pensions sector has a lot to answer to here and I know there are huge improvements and steps being taken. BUT all of us as individuals have to understand that at some point we will want/need to stop work. There will be things we want to do.
Three things we see when it comes to pensions and engagement:
1. It’s too far away
Let’s be real here, at some point you will stop work. Once you reach 60, average life expectancy is into your mid-80s. So you will need an income. You will still have financial responsibilities and you will want to do things. Except we can’t if we don’t plan for it. Research shows the earlier you start on this path, the easier it becomes. Plan for retirement.
2. It’s too hard
It is hard. Finances are hard. Future finances are harder. Pensions onions are harder again. However, you can look for easy things you can do to get you started:
- Look at your annual statement to give you an idea of where you are currently – some even project to your scheme’s Normal Pension Age;
- Use the online tools and modellers to help provide an indication of future benefits and options;
- Use resources available within the workplace – your employer may be able to signpost you to more help or hold pensions seminars for you to attend.
3. It’s not important
It is. If you have thoughts on when you want to retire, can you afford it? Mentally, physically, socially, and financially. If you have not given any thought to any of these things, then you might find you will not get the retirement you want.
What do we think now?
All of these thought patterns (and more) are what led to Pen-gage coming into existence. It is why we continue to do the work that we do. It is definitely much harder at the moment, with rising costs and disposable income shrinking but saving for your retirement is no less important. If anything, it is even more important now than it’s ever been.