Pensions can be very complex at the best of times. Often when starting a pension fund, the hard work is done for us – say with an occupational pension – we take what we are given and contribute the default percentage out of our earnings. The good thing is we have started saving early and we are also getting extra contributions from the government and our employers. This is all well and good, but if that pension is not performing, or if the benefits do not match individual needs, then this could turn out to be quite an expensive exercise.

Your long-term savings

At the end of the day, your pension fund is no more than long-term savings. The money you save is going to be there when you most need it – after you have finished work and your income is likely to be greatly restricted. For an enjoyable and secure retirement, you will need to cover that financial gap. If your occupational pension is not going to do the job you need to be looking elsewhere. But what can you do if pension jargon just sounds like gobbledegook?

Don’t forget your State Pension

The first thing to do is keep an eye on your State Pension. As long as you work in the UK you can be sure (under current rules) that you will receive a State Pension. But how much you will receive will be dependent on what National Insurance contributions you put in while you are working. If you are absent from work you can make up the gap by NI credits through claiming benefits or by adding a lump sum amount yourself. If you are self-employed you need to ensure that you pay class 2 National Insurance credits which will go towards your State Pension.

Get to know your work pension

Don’t continue to contribute to an occupational pension which is not giving you the rewards you would expect. Monitor its growth and benefits through the annual report sent to you. If you feel you need to make changes you can speak to human resources or the pension provider themselves. A tweak here and a tweak there is fine, but what if you need to review your overall pension strategy?

Using the Internet

More often than not, individuals need more than one occupational pension and the State Pension. As well as keeping a close eye on an occupational pension there may be a reason to begin to put money into a parallel personal pension pot. So where do you go? How do you find the right fund for you with the right benefits?

A good place to start is the internet. There are many websites which offer great guidance information about the various benefits, options and current providers you should look out for. Un fortunately what these websites do not allow you to do is match the information with your current circumstances so you can design your savings strategy in an informed way.

Hands-on advice

What you need is an adviser. But who is safe to go with? You need to make sure that the adviser is regulated by the Financial Conduct Authority (FCA). The FCA create principles its advisers have to adhere to, in order for them to remain under their umbrella. A regulated financial adviser can review your pensions, independently explore the financial markets for the most appropriate pension fund for your requirements and stick with you throughout your journey.

Before looking at options for your pension, consider using a regulated financial adviser like Portafina or, view the info at Pension Wise.