economy
Five expert ways to increase your pension as most people are 'off-target'
Finance experts have outlined five tips for workers looking to boost their pensions after a study found that almost all age groups are failing to meet retirement fund targets. Aviva's investment platform Wealthify says their research revealed only Millennials' (25-34-years-old) retirement expectations match the predicted figure required for a 'moderate' retirement.
TL;DR
- Most age groups are not meeting their retirement fund targets, with significant shortfalls projected for older demographics.
- Millennials (25-34) are the only group whose retirement expectations match the predicted needs for a 'moderate' retirement.
- Experts recommend starting pension contributions early to benefit from compounding growth.
- Increasing contributions, especially during pay rises or bonuses, can significantly boost retirement savings.
- Consolidating old or lost pension pots can simplify management, potentially reduce fees, and provide a clearer financial picture.
- Investing in a personal pension may offer higher long-term growth potential compared to cash savings.
- Reviewing withdrawal strategies such as drawdown, annuities, or lump sums is crucial for managing pension longevity.