It is wise to manage your pension savings effectively, so you can fund the cost of care in later life without selling your home. New research shows, however, some of us are finding it hard to monitor our different pots, so to help you out, we have decided to explain how to keep track of your pension.
It is good to plan your retirement income now, so you are prepared to face whatever comes in future. Keep in mind that one day, you may need to go into a care home and unless you have no assets or savings, you will have to foot the bill. The government can use your assets, e.g. your house, to fund the cost of care, in which case you will not be able to pass them onto your loved ones when you die.
If you save up enough money in your pension, however, you will be able to bankroll the cost of care without having to your assets. Be aware that there are more options than ever here – you are entitled to a state pension, in most cases your employer is now obliged to enrol you in a work place pension and you can open a private pension, so if you start saving now, the cost of care should not be an issue.
If you take advantage of these options, you may find it hard to track your pension pots, as you keep opening new ones. This is a problem that many of us are facing right now, as new research indicates that 62% of UK adults have multiple pension pots, but 39% do not know the total value of their pensions and a fifth have lost track of at least one, making it harder for them to save for retirement.
So how can you tackle this issue? The best strategy is a preventative one – store any documents that are related to your pensions in one secure place – ideally under lock and key – to make it easier to keep track of them. It is also wise to inform all your pension providers if you change your address, so they can send any new documents to you, allowing you to monitor your pensions carefully in future.
If you lose track of a pension pot, however, there are ways to address the problem. You can use the government’s ‘find contact details’ tool, giving you the information you need to get in touch with a workplace or private pension provider, who will take you from there. You will need the name of your employer/pension provider to use this service and it will not tell you whether you have a pension with the company in question or the value of your pot – it is the company’s job to do this.
It will eventually be even easier to stay abreast of your pension pots, as the government is planning to launch a ‘pensions dashboard’ online in 2019. This dashboard will give you the ability to track your defined contribution, defined benefit and state pension pots all in one place. According to the research, 35% of people think the dashboard will help you keep track of all your pension funds.
Prestige Tax and Trust Services
If you keep track of your pension pots, it will be easier to fund the cost of care without using your assets. But to ensure this strategy proves effective, it is wise to consult specialist advisors, so you can protect your capital at all costs. We would be happy to help – at Prestige Tax and Trust Services we are experts in cost of care matters, so we can help you navigate these issues and safeguard your assets.