Start Early and Pay as Much as Possible
Time is of the upmost importance when looking to accumulate a pension. The more you save earlier on, the more time your contributions have to grow. Compounding can also allow individuals to gain returns on their past returns. The longer your timescale ahead of retirement, the faster your money could grow.
Keep Up with Pension Contributions
Missing or providing reduced contributions during an individual’s 20s and 30s can have a considerable impact on retirement income – so, it’s best to get ahead of this early. Getting ahead allows greater flexibility when it comes to time away from the workforce, whether that be to have children, travel or unexpected periods of illness or personal circumstances. Keeping up with payments will also bode well for instances where an individual may wish to reduce their hours.
Maximise Employer Contributions
Many businesses offer an incentivised contribution format for their employees. Many businesses offer to pay more to match an employee’s contributions should they choose to increase their payments. When starting at a new business, it is always worthwhile to enquire about pension procedures – to ensure you’re getting the most out of your employer.
Increase Contributions upon Pay Reviews
Another way in which women can mitigate the impacts of the gender pension gap is by altering their pension contributions in alignment with pay reviews. It can be easy to forget about the wider implications of a salary increase – checking in with how much you are paying into your pension allows for the appropriate increase to be selected for future months.
Track Down Lost Pensions
Pensions can become lost for a variety of reasons, for example; a change in workplace or home address. Failing to keep track of the whereabouts of your individual pensions can result in a significant loss to overall pension value. If you are unsure about whether or not you have any missed pensions, write down all of the businesses for whom you have worked and check to see whether you have the paperwork relevant to each pension. Should you find any missed pensions, you may wish to utilise a pension tracing service, such as that provided by the government.