Seven Ways To Boost Retirement Income

Everyone could do with boosting the amount of cash in their pension fund for retirement.

That extra cash can help you give up work earlier, phase in retirement by working part time or go towards a few more of life’s luxuries.

However, not everyone knows how to make the most of their retirement savings.

So here are seven tips for wringing every penny of savings you can out of the money you have put aside for your later years:

• Save more – It sounds simple and is a simple solution, but not one everyone can afford if their cash is already stretched just paying the bills every month. The principle is straightforward, the more you put away now, the more you will have to spend in retirement.

The sooner you save extra, the more you get thanks to the magic of pension tax relief increasing your pension pot and compound interest working magic year after year

• Shop around for a better pension – Pensions are upgraded with new benefits and features from time to time. If you have an old pension, you may find the benefits are better than many on the market now, especially if a guaranteed annuity rate is built-in.

Still, there’s no harm in looking for the best deal and you may find you can save the same but end up with more cash.

• Claim higher rate tax relief – Thousands of 40% and 45% taxpayers forget their workplace pension only tops up their retirement savings by 20%. If you want that extra cash top-up, you must apply for the money by filing a tax return each year

• Check underlying investments – Make sure funds are performing as expected and look at the alternatives. Don’t forget some providers will charge for witching funds.

• Check pension charges – Make sure you are only pair a value-for-money price for the features you want. Many self-managed pensions, like self-invested personal pensions (SiPPs), have a list of charges for services many retirement savers never uses

• Consolidate funds – Look at you pensions, if you have more than one, and consolidate them into a single fund. This should save some charges, but whatever you do, you will pay some fees to the provider somewhere along the line

• Regular reviews – Set financial goals and review your retirement saving strategy to make sure you stay on track

Don’t forget to crunch the numbers before making any financial decision to make sure the move boosts your savings – and if in doubt, take professional advice from an independent financial adviser.