Money matters might not be the most interesting topic. But keeping on top of financial planning – particularly when it comes to looking after your future finances – can pay off in the long term.
But where can you start? We’ve got a few helpful hints to take control of your money…
Know where your money is
It might seem like an obvious point, but losing track of your hard earned money is easier than you think! Throughout your working life, you may have collected a number of pensions, thanks to autoenrollment. This is because it is the law for companies to enrol all eligible employees into a workplace pension scheme.
So even if you’re now self-employed, you could still have money saved into a pension pot from previous jobs.
This money is yours, so it’s very important to track it down. You can do this currently via the Government’s Pension Tracking Service. Whilst the process can be time consuming (it only gives you the contact details of your pension provider so you can get in touch, rather than showing you personal pension information), your efforts will pay off in the long term!
After all, the Pensions and Lifetime Association found that 3.3 million pension pots are now thought to be lost, with each pot worth an average of £9470. And this begs the question…could you afford not to know where your money is?
Monitoring savings
Once you’ve tracked down your money in various pots, you’ll be in a great position to think about how much you are contributing to your future finances.
The beauty with pension saving, is that you can adjust how much you want to save as and when you need to. So, if you’re feeling comfortable doing so, you can boost your contributions permanently, or for a set period of time (and this can be done either as a self employed person, or if you’re an employee in a larger company). Saving more now, means you will enjoy being able to give yourself a larger financial cushion in future.
Alternatively, you can still reduce pension contributions, if you feel that you could do with a little bit of extra money in your pocket in the short term. Maintaining regular contributions is very important, but sometimes it can help to give yourself a bit of leeway in the short term, whilst still saving for your future.
Monitoring your savings every month is key to keeping on top of your financial future, and making sure you’re in the strongest possible position.
Explore your options
So, you know where all your money is, and you’re comfortable with your contributions. But is your money in the right place?
There’s only one way to find out….explore your options!
For example, if you’ve tracked down all of your pensions, it could be beneficial to make sure they’re all in one place. This could benefit you for a number of reasons, such as cheaper fees, the convenience of having your pension all in one place, and the potential to enjoy greater returns on your money. Transferring your pensions all into one pot could really pay off!
Of course, there are some points you need to consider, such as whether your scheme has exit fees, whether you’d be missing out on special benefits available with certain schemes, or employer contributions (if you’re contributing to a workplace pension scheme).
Power up your decision
When weighing up different financial decisions, it pays to get expert help! Seeking independent financial advice is key to making informed financial decisions, and understanding which option is best for you.
This is why TrustATrader trusts My Money Expert to offer regulated tailored independent financial advice. The team wants to understand what you value most and how you can use your finances to secure the financial future you want!
Money matters might not be the most thrilling topic, but it certainly pays to get ahead and keep on top of your finances. And luckily, the right support is available to help you do just that!
My Money Expert has been helping the UK to unlock its financial potential since 2010. Rated 5 Stars on Trustpilot, we offer regulated independent financial advice on a variety of areas including investments, ISAs, pension consolidation and retirement planning. We’re proud to be a B Corporation and are committed to doing right by our clients, as well as the wider community.