State Pension UK: ‘Now is the time’ to review your forecast and retirement plans | Personal Finance | Finance


State Pension payments are issued by the government to Britons of an eligible age, who have a certain number of National Insurance contributions. It is important to note, however, some will receive less than the full new state pension sum if they were contracted out before April 6, 2016. Alternatively, there are other pension arrangements such as a workplace pension or private arrangement which can help people save for their retirement.

However, it is also of equal importance to consider any personal arrangements for retirement which have been made.

Ms Hanifan continued: “For those who are in a personal arrangement, and you can review this, do so. Make a review of what your pension arrangements will be, and what you are set to obtain.

“A lot of older people may not have yet taken their pension, they could be working part time, for example.

“These individuals should be reviewing whether this is still something they want to do, but regardless you need to have a grasp and understanding of what your current pension situation is.”

There are various types of pension arrangement, and thus different approaches which can be taken with each one.

Universally speaking, however, many will have been auto-enrolled into their workplace arrangement, a tool used by the government to encourage planning towards retirement. 

Pension providers should offer Britons a statement annually, which will inform them of how much is in their pension pot.

In addition, people are also able to contact their provider to ask for an estimate of how much they will receive when they start taking their pension sum. 

A similar approach can be taken when it comes to a private pension arrangement.

When it comes to this approach, many people will have a financial adviser, but can also ask for a yearly summary to understand the amount, a selected retirement age, and if pensions have any special features. 

Ms Hanifan, however, concluded, by stressing the importance of taking action on finances, stating the new year provided a perfect opportunity to do so.

She said: “You need to make sure you’re running your finances, and that your finances aren’t running you.

“Even if you can’t solve the problem all at once, you need to start to address it gradually, and this can involve making small changes to ensure your goals are met.

“Financial advice may be able to help you in these kind of circumstances, because you have someone to go through these issues with you.

“To have that sounding board can be particularly important for those who are not entirely sure what to do.”

Britons can receive free, impartial guidance over the phone or face to face with the government’s Pension Wise service.

Alternatively, some may wish to seek the advice of a financial adviser who will be able to sit down to examine the complexities of an arrangement with an individual. 

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