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Dec 03

Webinar summary: What to do if you have no pension savings

Reading Time: 4 mins

We recently hosted a webinar in partnership with leading pension provider PensionBee, in which we discussed what to do if you have no pension savings.

Our founder Jasmine Birtles hosted this webinar, alongside expert guests. She was joined by Romina Savova, CEO of sponsor PensionBee, Jessica Beard, Personal Finance writer at The Telegraph and financial advisor David Braithwaite.

This webinar is for people of all ages, whether you are in your 20s and want to start saving or are almost at retirement age, we give advice on how to save a nice nest-egg for your retirement.

You can watch the full webinar and read the summary points below.

If you are nearing retirement and have no pension, is it worth starting one?

Romi says:

  • It is absolutely still worth starting a pension
  • You can start a pension at any time, as long as you are eligible for tax relief
  • Many people may realise they haven’t got a pension due to lack of opportunity or breaks in their careers
  • People may not have been automatically enrolled by their employers
  • There are still incredibly helpful tax incentives which will help when saving into your pension
  • You get at least a 25% tax top up which goes directly into your pension

How can you find pension pots you may not know exist?

Romi says:

  • Because of how the pension system works, you may have ensions you have forgotten about or lost track of
  • Employees from 2012 onwards were automatically enrolled into pensions
  • Some employers before this oten used auto-enrolment
  • It can be hard to remember where you have a pension and who with
  • This is the case for people who worked before it was all online
  • You may have moved to a new house or changed employers and lost track
  • You can use the government’s free pension tracing service

What are the big issues with pensions?

Jessica says:

  • Pensions always seem a long way off, and they are never an immediate priority
  • Holidays, weddings, children often get priority with spending
  • People don’t know how much they need to save and when they want to retire, which can be a barrier
  • The knowledge gap is a big problem

How much should I be saving?

David says:

  • It’s important to save enough to be comfortable
  • People just want to have enough to pay their bills, treat their grandchildren, go on a few nice holidays
  • Pensions can be disengaging, so it’s important to know how much to put in
  • Work out what sort of income you would like to have when you retire, and then work out how big your pot should be to fund that income
  • You can use this to work out what you need to pay in

What is pension consolidation?

Romi says:

  • It can be a helpful way to stay on top of your pension savings
  • It’s easier to keep track if it’s all in one place
  • You can get the total balance
  • PensionBee have an online calculator to help you work out what you need to put in to reach your goal
  • Putting your pensions together often results in a reduced fee, it might help you reach discount qualifications
  • Make sure you aren’t giving up on valuable guarantees, protections and discounts when leaving older pension providers
  • Make sure you don’t have to pay an exit fee

What else can you do to create a nest-egg?

Jessica says:

  • Make sure you don’t put your money in an easy-to-access account
  • There are different ISAs you can explore and choose the best on for you
  • The good thing about a Lifetime ISA, is the government puts in 25% of whatever you put in up to £1,000
  • You can either buy your first property with a LISA or lock it away until retirement

I’m self-employed, what do I do?

 Romi says:

  • If you are self-employed you have to make pension provisions for yourself
  • Providers such as PensionBee offer self-employed pensions
  • You can start from scratch and contribute yourself or as part of your company
  • You can bring your old pensions into your new one
  • You may wish to do regular or one-off contributions
  • At PensionBee it takes five minutes to set up an account
  • You can fill in information about previous pensions if you want to move them over
  • We also check for exit fees

Jessica says:

  • It’s hard to know where to go, who to ask and who to trust
  • It’s important to ensure you are getting the best service and advice
  • People often put it off
  • The Money and Pensions service can give good advice and help

How much do financial advisors cost?

David says:

  • It varies
  • Some work on a fixed, project-based fee
  • Some work on a percentage of the pot you are moving

Advice on sustainable pension funds?

Romi says:

  • Views on this have evolved over the last few years
  • PensionBee offer a fossil fuel-free pension, which doesn’t invest any of your money into oil, or companies that offer services to oil companies
  • Changing to a sustainable fund can be one of the most powerful changes

Is it worth keeping some money in a savings account?

 David says:

  • Financial planning is about balance
  • Putting money into a pension means it’s gone until you retire
  • It’s important to try and save 3-6 months’ worth of salary in savings for emergencies, instant cash you can pull on

Is there a minimum amount you can put in your pension each month?

Romi says:

  • It’s usually very flexible and you can put what you want and what you can afford in
  • It depends on your goals

Can you start pensions for children?

David says:

  • Yes, and not many people know it’s an option
  • It’s got the same tax relief and tax benefits
  • You can put £2,800 in per year
  • It has a huge impact as the compound growth will build up over their lifetime
  • You can start it at any age

Can you pass on your pension when you die?

Romi says:

  • You can allocate beneficiaries
  • You can split your pension up between beneficiaries
  • It’s a tax-free inheritance alternative

WHAT DO YOU THINK?

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