It pays to check your pension

When was the last time you carried out a full MOT on your pension?

It is an area that can often get overlooked by savers as they focus on other areas including ensuring that they’ve taken full benefits of areas such as cash ISAs and that their tax situation is in good order.

Pension experts have highlighted some simple steps that people can take now, in order to ensure their plan is in a good place and working as hard as it can for them.

The first is to look and see if you are putting enough into your pension pot. Are your contributions at the right level – or could you be putting in more?

Even a small increase today can have a major impact on how much you receive in retirement.

Secondly, have you nominated your beneficiary – the person who will receive your pension if you should die.

Unlike other assets your pension sits outside your estate and it doesn’t automatically go where you might have directed in your will.

Making sure you have named a beneficiary – or updating who it is if necessary – means that decision isn’t taken by trustees or even the pension provider and is one less thing for your loved ones to cope with at a stressful time.

And if you haven’t done it already, now is also a good moment to switch on salary sacrifice, if your employer offers it. It is a good way to reduce both your taxable income and your national insurance liability.

From April 2029, salary-sacrificed pension contributions above £2,000 per year will no longer be exempt from NI – so take advantage of the opportunity while it is fully available.

• To discuss any issues raised by this article please contact me on 01772 430000