A financial expert has outlined three important questions to consider about your pension, as recent studies indicate a growing trend of individuals turning to social media for financial advice.
According to a new study by AYTM, conducted for TikTok, one in three users in the UK now utilizes the platform to educate themselves on financial matters, with 41% encountering banking-related content on their feeds.
Scottish Widows has leveraged TikTok to engage Generation Z in pension planning, with over 191,000 posts tagged under #retirementplanning and an impressive 323 million video views since joining the platform in September 2024. HSBC and Nationwide have also seen success with their financial content on TikTok, generating millions of views and helping users build financial confidence.
Pensions expert Robert Cochran from Scottish Widows has shared valuable advice for those struggling to kickstart their pension journey or optimize their retirement savings. He emphasized the importance of keeping track of multiple pension pots, urging individuals to reach out to their pension providers and utilize the free pension tracing service available on GOV.UK.
Robert recommended downloading pension provider apps to monitor private or workplace schemes and checking state pension forecasts through the HMRC app. Understanding one’s current savings is crucial in determining the type of retirement lifestyle achievable, as defined by the Pensions and Lifetime Savings Association (PLSA) – minimum, moderate, and comfortable.
If individuals find themselves falling short of their desired retirement standard, Robert suggests considering increased contributions to workplace pensions. Through auto-enrolment, employers typically contribute a minimum of 3% while employees contribute 5%, but maximizing employer contributions can enhance retirement funds.
Lastly, after locating all pension accounts, Robert advises individuals to decide whether to leave them as separate accounts or consolidate them. Consolidation involves merging multiple pensions into one, considering fees, exit costs, and ease of monitoring. By streamlining pension plans, individuals can potentially reduce costs and simplify management.
By addressing these key pension questions and taking proactive steps, individuals can better prepare for a secure financial future.
