Tom Macphail in an article captioned “10 costly
Pension Mistakes” noted that “If you have a pension, have you ever reviewed it?
Millions of people haven't. Moreover, recent research revealed more than two in
five adults (41%) - 8 million people - cannot remember how their pensions are
invested. Why is that alarming? Performance can vary quite dramatically across
investments and even a seemingly small difference could have a significant
impact on the size of your pot”
Continuing he stated “that these are just
projections. Investments will not always go up in value, they also go down, so
you could get back less than you invested; what is certain is that they won't
perform as predicted. Also, these values are in today's terms, without
considering inflation, which will reduce the spending power of your money over
time “
Macphail concluded that “Therefore checking your
pension pot is very essential in avoiding mistakes”.
And according
to Walter
Updegrave in an article captioned “Three Little mistakes that
can sink your retirement, which appeared in Yahoo Finance it states that “It’s
almost become a cliché. Virtually every survey asking pre-retirees what they
plan to do in retirement shows that the overwhelming majority plan to work.
Indeed, a
recent Merrill Lynch survey found that nearly three out of four people over 50
said their ideal retirement would include working. Which is fine. Staying
connected to the work world in some way can not only offer financial benefits,
it can also keep retirees more active and socially engaged.
How then do
you increased your pension pot, experience has shown that majority do not
realize the importance of the pension pot until a year to their retirement when
they suddenly realized that the total savings could not carry them through.
The best
approach is to use the pension calculator, contributors should
make it as a duty to check their pension pot from their Pension Fund
Administrators or they make online pension calculator which has in built
mechanism capable of calculating the contributor’s likely expected values and
returns based on a projected contribution and an expected income.
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