We all diligently pay into our pensions throughout our working lives, but many of us have unspoken assumptions or seemingly silly questions that go unanswered. Not to worry; Paul Hardy explains all the questions about your pension you’ve always wanted to know but might be too embarrassed to ask.

The questions about pensions you’re too embarrassed to ask

How much do I actually have in my pension?

There’s no shame in admitting that you’re not sure what money you have available – or where exactly it might be.

If you’ve changed jobs, you’ll probably have multiple pension pots so you might not know how much you have all together, not to mention how much you may have by the time you retire.

Sitting down with a financial adviser to go over the different funds you’ll have access to, and consolidating them into one pot will give you a much clearer picture of how much you have saved.

One particularly useful thing you can do before speaking to your financial adviser is to check your state pension forecast. Here, you’ll be able to see your contributions so far and pay off any contributions that you may have missed to ensure you receive the maximum amount payable to you when you come to retirement age.

I don’t like taking risks; how does investing work?

When it comes to investing, nothing is without an element of risk. 

However, almost everything in life has risk too – from crossing the road to cooking a meal – the important thing is doing what you can to minimise the risk and making a judgement on how the likely benefits outweigh it.

Ultimately, although there is a risk of burning your fingers, cooking a meal is much better than eating raw ingredients so, if you know what you’re doing, it’s well worth it.

There are different levels of risk when it comes to investment and, while there is never a guaranteed return, it’s important to take care to discuss what level of risk you’d be comfortable with to yield the best results for you and your specific circumstances.

Am I wealthy enough to have a financial adviser?

This is an understandable concern for people who are worried about their income and how to effectively manage their expenditure as efficiently as possible. I would argue that a knowledgeable and tactful financial adviser can yield a much greater saving than any cost you might incur, so in this sense it can pay dividends to discuss your finances with an expert. 

From tax-efficient ways to grow your savings while minimising your liability for National Insurance through to exploring the host of options available to you for investing your funds to help them grow organically, you don’t need to be rich to have a financial adviser – but you’ll likely find yourself better off for having one in your corner.

Will I ever be able to retire?

This is probably the number one concern that people skirt their way around – but of course, we all want an answer to this burning question.

The short answer is ‘yes’. The longer answer is that the age at which you’ll be able to retire depends heavily on your regular income, expenditure and how shrewd you’ve been when it comes to saving and investing. 

My colleague Paul has just explored this topic in detail, so read his recent blog ‘when can I retire?’ to find out more.

If you’re curious about investing and want to know how you can maximise your pension pot ahead of retirement, get in touch with our expert team today.