Will the retirement you get be the retirement you want?

It’s easy to put off saving for retirement for another month, for next year or for after you have that big holiday you’ve been planning for ages. As financial priorities fight for your hard-earned money, it can be difficult to start saving for the future.

However, it's important to give later life some thought, and start planning now so you have the financial stability to do all the things that you will want to do, then.

Here are a few common misconceptions people have about retirement that can make them postpone taking action to secure their future, along with some ideas of how you can overcome them...

I might not live all that long, so why bother saving?

Despite the Covid-19 pandemic causing life expectancy in the UK to fall by 1.3 years for men and 1 year for women*, on average Brits are still living longer. For many people this means that they may spend longer in retirement so they may need more to live on in later life. This is why it is extremely important to get into the habit of saving regularly so that you have enough to live a happy life when your working days are over.

I don’t need to save more as I’ll have my State Pension

As much as the State Pension (currently 203.85 per week) provides a good base, it’s unlikely to be enough to live on. In addition, your State Pension may not be available until after your pension age and your State Pension age may change in the future.

Saving into the Uniper Group of the Electricity Supply Pension Scheme provides you with another income to help you do the things that you want later in life.

I’m in my 40s now so it’s too late to start saving

It’s never too late to start saving for a pension. Every penny counts. Now you’re in your 40s and over the financial turbulence associated with raising a young family people often experience in their 30s, you may have a little more financial security and more money to spend on yourself. If that’s the case, now may be the time to up your savings game and to prioritise your pension over all other things your money could be going towards. You could even top up your pension savings if you want to with Additional Voluntary Contributions (AVCs).

Even though it may seem like a lifetime away, your retirement needs your attention now.

So what can you do if you’re still unsure about whether to save?

The first step would be to get a feel for how much you might need.

The Pensions and Lifetime Savings Association (PLSA) offers a handy ‘tool’ called the ‘Retirement Living Standards’ which aims to give pension savers a clearer idea of the income levels you should aim for if you want either a minimum/moderate/comfortable retirement. Check it out https://www.retirementlivingstandards.org.uk  

And then get to grips with your pension by logging on to https://uniper.myesps.co.uk/

Log in today to keep track of your retirement savings, whenever and wherever it’s convenient for you. You can log into your myESPS account to:

• view the latest value of your pension
• check or update your contact details
• complete your Expression of Wish
• request estimates of your retirement benefits
  

Whether you’re close to retirement or a long way off, it’s important to take control of your pension planning and your secure myESPS account is a great way to get started.

*https://www.kingsfund.org.uk/publications/whats-happening-life-expectancy-england#:~:text=By%202019%2C%20life%20expectancy%20at,females%20(see%20Figure%202).