Top 5 Ways to Boost Your Pension Before Retirement

Increase your contributions

Even modest increases to your monthly pension contributions can significantly boost your financial pot, especially when combined with tax reliefs and any matching contributions from your employer.

Consider upping your contributions whenever you receive a pay rise or bonus to make the most of those extra funds without it impacting your day-to-day spending.

It’s also a good idea to make a habit of reviewing your pot regularly to make sure they align with your retirement goals.

You can review and update your contributions at any time through the Creative Pension Trust Member Portal.

Take advantage of tax relief

One of the major advantages of saving into a pension is tax relief, as it effectively gives you extra money to help you grow your pension faster than if you were saving into a regular savings account.

For every £80 you contribute, the government typically adds £20, which instantly increases the value of your investment.

If you’re a higher-rate taxpayer, you could even claim more through your self-assessment tax return. Check your annual allowance (which is currently up to £60,000 depending on your circumstances), and plan your contributions strategically before the tax year ends to maximise the benefits.

Check and update your investment strategy

As you begin to approach retirement age, it’s advisable to make sure your investments still keep pace with your income goals and your approach to risk management. Are your current funds too aggressive? Too cautious? Adjusting your investment strategy could help you strike the right balance between growth and security.

Revisit your pension fund choices through the Creative Pension Trust Member Portal to ensure they still fit your retirement plan. If appropriate, you might consider switching to sustainable or lower-risk options.

Track down and combine old pensions

Over the years, it’s easy to lose track of pensions from previous jobs, and having multiple pots can lead to higher fees and confusing planning. Combining them into a single pot not only simplifies management but may even boost your pots’ growth potential by minimising your overall charges – but be aware that combining your pots can also incur a fee.

To get started, it’s wise to draw up a list of your past employers and check if you have any dormant pensions. Bringing them together makes the process of accessing your funds much easier and more
efficient.

Delay drawing down your pension (if you can)

If you’re able to continue working and don’t need to access your pension immediately, delaying your drawdown can significantly build up your retirement savings. Giving your pot extra time to grow, even if it’s just by a few years, could potentially give you a bigger fund to work with – and ultimately, a much more comfortable retirement.

Delaying might also open up access to better annuity rates or allow for more flexible income options later on. It’s a great way to strengthen your financial position, especially if you’re contributing throughout this time.