Quick pension fixes for people who hate admin

Tackling pensions can seem like hefty work, from tracking them down, organising them all into one place, or even deciding whether to opt in or out of them – for some people it can feel like an inordinate amount of admin. However, it doesn’t always have to be that way. Two finance experts share their advice on how to make pension management as easy as possible.

What are quick pension fixes people can easily make?

Household finance expert and CEO of Nous, Greg Marsh says a simple starting point here is the government’s Pension Tracing Service. “It’s free to use and you don’t need to gather old paperwork – you just need the names of your previous employers to get started,” he says.

Kirsty Ross, head of proposition at People’s Pension says that the ability to take small steps when it comes to your pension can have a massively positive impact in the future. “My number one tip would be to not do anything,” Ross says. “What I mean by that is, don’t opt out of your pension. By doing nothing, you are already setting yourself up for success when it comes to pensions.

“Beyond that, you can take time to become more educated and engaged with pensions too. For example, when you are enrolled into a pension, your provider will give you documentation to welcome you to their pension scheme – don’t put that paper in the bin, put it somewhere safe.”

“Download your provider’s app also. That means it’s all just there on your mobile phone,” she says. “You don’t need to look at it regularly, but maybe once a year you can dip in and check how much is there.”

Are there any apps or tools that make pension management easier?

“There are a number of tools, such as PensionBee and Moneybox, that combine your old pensions for you,” Marsh says. “These can save you plenty of time hunting for old pensions and give you a clearer picture of how much you’re likely to have for retirement.”

Ross adds: “There are pension providers like us that have services to help people find lost pensions. You don’t need to know who your provider is or what your policy number is. You just need to know who your employer was and the duration you were employed by them.”

“If you also go to your provider’s website, you will be able to find interactive tools that help you plan,” she adds. “One of the things that we found within our research, which makes people feel more in control, is just looking at what a retirement plan might look like. Pension provider websites should have the tools that allow you to understand the sort of income that you might need in retirement, and understand whether you’re on track to meet those income needs.”

What are common pension mistakes people make that are easy to avoid?

“A surprisingly common mistake is not making the most of employer contributions,” Marsh says. “Many workplace schemes will match what you put in, sometimes even doubling it up to a certain level.

“If you’re only paying the minimum, you could be leaving free money on the table. Increasing your contributions just enough to unlock the full employer match is one of the most effective ways to boost your retirement savings without feeling the full cost yourself.”

Ross says: “It’s really about the power of investing a small amount now and how that turns into a very big amount decades down the line. This can be easy to underestimate when you are grappling with having to save for a mortgage, managing daily expenses and the cost of living. It’s easy in those times to think you should opt out of your pension and have an extra bit of cash in the bank. However, if you’ve never had it, you won’t miss it. Don’t opt out.

“That money will grow significantly over time, and it’s a decision that you will not regret in the future.”