How to deal with a gap in your pension savings

Money Advice Service

A lot of people find they have a shortfall when they come to check their current pension savings. If this applies to you, use our ready reckoner, below, to estimate how much extra you need to save. If you don’t know if you have a shortfall, use the links provided to check.

How to check if you have a pension income shortfall

If you don’t know whether you have a pension shortfall to fill, follow these links:

If you have a shortfall, how much do you need to fill the gap?

Use our Pension calculator to estimate the monthly savings you’ll need to contribute in order to generate a comfortable retirement income.

The cost of filling a shortfall in your projected pension income depends largely on your age.

The further away from retirement you are, the more time you have to boost your pension savings, and the more time your savings have to grow.

Your main options

Once you’ve worked out how much extra you need to contribute to your pension savings each month, you have a number of options.

We’d suggest considering the following, in this order.

  1. All employers must now offer eligible employees a workplace pension and make contributions to it. If you are employed, joining your employer’s workplace pension scheme is the best way to help fill your retirement income gap.
  2. If you’re already a member of a workplace scheme, boosting your contributions to it might be the most convenient option for you. Many employers match the contributions their employees pay, so if you pay more, they also pay more.
  3. If you’re self-employed or not eligible to join a workplace pension scheme you can set up your own personal pension plan. The options here include stakeholder plans (which have capped charges) and SIPPs (which can offer a wider investment choice, but often come with higher charges).

Where to get more information and advice

If you need further help, especially if you’re investing money, you can speak to a regulated financial adviser who will go through your options and help you choose the best one for you.

You will have to pay for financial advice, but advisers must go through their fees and charges with you before you commit. You can find a regulated financial adviser through our Retirement Adviser Directory.

Speak to at least three firms and ask about their charges for this type of advice.

This article is provided by the Money Advice Service.

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We want you to understand the positives, but also the limitations of using our site. We operate in a journalistic manner and therefore all information, guidance or suggestions provided are intended to be general in nature, and you should not rely on any of the information on the site in connection with the making of any financial decision.

When we set out to build Rest Less Money, we wanted to be a trusted place where you could find helpful information about financial matters affecting the over 50s. As a free to use resource, we try hard to provide the best information we can, but we cannot guarantee that we won’t occasionally make mistakes. So please note that you use the information on our site at your own risk, and we can’t accept liability if things go wrong.

Key things to remember when using Rest Less Money:

We do not offer financial advice – As a journalistic site, it’s important to know that we do not provide financial advice. You should always do your own research before choosing any financial product so that you can be certain it is right for you and your specific circumstances. If you are in any doubt, please seek professional financial advice from a regulated financial advisor.

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Accuracy of Information – We try to make sure that all the information provided on Rest Less Money is correct at the time of publishing as we want it to be the most helpful resource possible. Sadly, we are not perfect however, and so we can make no guarantees as to the completeness, accuracy, adequacy or suitability of the information available on the site.
Whilst we work hard to try and provide accurate information, deals and prices can change, so whilst they may be correct at the time of writing, providers may subsequently decide to alter them later – so always double check first.

A final note on the Rest Less Community Forums – always remember that anyone can post their opinion on the Rest Less Community Forums, so it can be very different from our own opinion and may not be factual or well researched. Always be wary of any content posted on the forums and be sure to do your own research and due diligence on anything suggested. 

We hope you find Rest Less Money a useful resource and we would welcome your feedback at [email protected] on how to make it even better. For more information on any of the above you can read our full terms and conditions.

Some important information about Rest Less Money

We want you to understand the positives, but also the limitations of using our site. We operate in a journalistic manner and therefore all information, guidance or suggestions provided are intended to be general in nature, and you should not rely on any of the information on the site in connection with the making of any financial decision.

When we set out to build Rest Less Money, we wanted to be a trusted place where you could find helpful information about financial matters affecting the over 50s. As a free to use resource, we try hard to provide the best information we can, but we cannot guarantee that we won’t occasionally make mistakes. So please note that you use the information on our site at your own risk, and we can’t accept liability if things go wrong.

Key things to remember when using Rest Less Money:

We do not offer financial advice – As a journalistic site, it’s important to know that we do not provide financial advice. You should always do your own research before choosing any financial product so that you can be certain it is right for you and your specific circumstances. If you are in any doubt, please seek professional financial advice from a regulated financial advisor.

No Liability – please note that you use the information on Rest Less Money at your own risk and we can’t accept liability for how you choose to use the information given on our site. We will often provide links to content or products and services available on other third-party websites. These are provided purely for your convenience and we cannot be held responsible for any content, or any of the products and services offered on any website that we link to.

 

Accuracy of Information – We try to make sure that all the information provided on Rest Less Money is correct at the time of publishing as we want it to be the most helpful resource possible. Sadly, we are not perfect however, and so we can make no guarantees as to the completeness, accuracy, adequacy or suitability of the information available on the site.
Whilst we work hard to try and provide accurate information, deals and prices can change, so whilst they may be correct at the time of writing, providers may subsequently decide to alter them later – so always double check first.

A final note on the Rest Less Community Forums – always remember that anyone can post their opinion on the Rest Less Community Forums, so it can be very different from our own opinion and may not be factual or well researched. Always be wary of any content posted on the forums and be sure to do your own research and due diligence on anything suggested. 

We hope you find Rest Less Money a useful resource and we would welcome your feedback at [email protected] on how to make it even better. For more information on any of the above you can read our full terms and conditions.

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