1. Delaying saving
When starting a pension – the earlier you start, the less it will cost you to build the perfect pension. Heritage can produce a series of forecasts to help identify how much you need to save to achieve your retirement dreams.
2. Not saving enough
How much should you save? Heritage will take the reins and help in finding your “magic number” and reveal how much to put away to achieve your targets.
3. Assuming the state will provide for you
One in seven 2013 pensioners relied exclusively on the state pension for their income. Heritage will assist in finding out what your contributions should be and how far they could go. We can also show you how little the state pension will go in your retirement planning.
How much more could you get if you increased your contributions by just 5% every year?
4. Not checking your pension pot
If you have a pension, have you ever reviewed it? Is your pension on track? Recent research reveals nearly three quarters of pension savers under the age of 45 don’t even know the value of their investments. Even a seemingly small difference in performance could have a significant impact on the size of your pot. Heritage can draw on more than 50 years of combined experience to find the perfect portfolio for you to ensure that your targets are met.
A 35 year old with a £20,000 pension pot could have a fund worth £26,871 at 65 if their investments grew by 2% a year.
The fund might be worth £64,115 at 65 if their investments grew by 5% a year or £149,277 if they grew by 8% a year
5. Relying on property
You may have heard the saying: An Englishman’s home is his castle. But it may also be his largest investment. However if you decide to just use property as a retirement fund the other saying that could apply to this case is: don’t put all your eggs in one basket. Heritage agrees that diversification is key to managing risk along with obtaining returns in all market conditions, our investment committee regularly meet to consider asset allocation.
6. Relying on inheritance
Millions of Britons are relying on inheritance to fund their retirement but many could find their plans are resting on shaky foundations and the amount they end up inheriting is far less than expected and at a time that is beyond your control.
7. Not checking if you’re getting good value for money
Most people know how much they pay for their mobile phone, but not for their pension. The services you get from your pension provider vary in depth and quality. Transferring your pension to a cheaper scheme could offer the same investment opportunities, but allow your pension to not work as hard to obtain the same returns.
8. Failing to track down old pensions
Few people stay with the same employer for life. Even fewer people keep track of all the pension schemes they have joined during their career. Some estimate the total of unclaimed pensions is in the scale of billions. Remember joining more than one pension but don’t have the details to hand? Heritage has access to a number of tools to ensure you have a complete picture of all your pension plans.
9. Not taking up employer contributions
Some private sector workers aren’t currently saving into a workplace pension. This means they could be missing out on “free money”. If you are offered a company pension will this give you enough?
10. Not using pensions to save tax
Claim your share of the £35 billion the taxman gives pension savers. Baffled by pension tax rules? Heritage will help guide you through the rules, including the new pension reforms being introduced in April 2015.