A financial expert has outlined the essential pension inquiries individuals should consider, amidst a surge in the use of social media for personal finance information. Recent findings by AYTM, in partnership with TikTok, indicate that a significant portion of UK users, one out of three, are leveraging the platform to educate themselves about financial matters, with 41% encountering banking-related content on their feed.
Scottish Widows has strategically tapped into TikTok to engage Gen Z on pension planning early on. The hashtag #retirementplanning boasts over 191,000 posts, and Scottish Widows, since joining TikTok in September 2024, has garnered more than 323 million video views. HSBC has seen over 10 million views on its personal finance content, while Nationwide is leveraging TikTok to boost financial confidence among users.
Robert Cochran, a pensions specialist at Scottish Widows, has shared expert advice with Mirror readers for those facing challenges initiating their pension journey or aiming to maximize retirement funds.
Keeping track of multiple pension pots, a common scenario for those with varied employment history, is crucial yet challenging. It is important to establish contact with pension providers to ascertain the total savings accumulated. Utilizing the free pension tracing service available on GOV.UK can aid in reuniting individuals with their retirement funds.
Robert recommends utilizing pension provider apps for both private and workplace schemes, in addition to reviewing one’s state pension forecast using HMRC’s app. Understanding the projected retirement lifestyle is key, with the Pensions and Lifetime Savings Association defining three categories: minimum, moderate, and comfortable.
In case individuals realize they are not on track for their desired retirement standard, increasing contributions to workplace pensions is advised. Through auto-enrolment, employers are required to contribute a minimum of 3%, while employees contribute 5%.
Lastly, consolidating multiple pension pots into a single plan is a consideration worth exploring. Evaluating existing fees, comparing alternatives, and assessing potential exit costs are essential steps. Consolidation can streamline pension management and potentially reduce costs.
By taking these steps, individuals can better navigate their pension journey and secure a more comfortable retirement future.