Starting with your retirement planning.
Most of us rejoice as we approach the end of January.
Despite it being one of seven 31 day months, for some reason this one always feels 51 days long instead.
So moving into February always feels like a big deal. Shorter. Closer to spring. Then summer. Always a win.
Well in my case this January has brought with it something even more exciting.
A pension pot worth ££££ (scroll down for the big reveal) that I didn’t know existed.
Let’s rewind a bit to the start.
So, you know already how I feel about pensions.
Obsessed.
It was one of the first pieces of financial advice I ever received at home.
“As soon as you start working properly, join the pension scheme”
Advice that sounded boring as a 22 year old.
But which hits different as a 40-something divorcee.
Because as a result of that advice, pension planning has always been in the back of my mind.
And through the years has become a cornerstone of my financial planning.
So when I set up rainchq, in recognition of the fact that I had lost the attractive workplace pension benefits I had become accustomed to receiving, sorting out a private pension became paramount and even more importantly, so was tracking down all my old pensions from previous employment and seeing whether it made sense to combine them (which I did a few years ago).
Fast forward to a few weeks ago then, when in the course of doing my usual life admin purge and opening all the boring letters and filing or shredding as appropriate, I was intrigued to come across one dated 12 months prior (don’t judge me!) asking me to get in touch because they thought I had a pension out there that they wanted to reunite me with.
Spoiler: make sure you do your due diligence on this stuff of course, scamming is wild right now.
But the upshot of this story is that, I was reunited with an old pension pot, one that had somehow been missed when I aggregated all my pensions years ago. Guess how much it was worth.
£20,000.
Mind. Blown.
£20,000 which as you know, over decades of compounding, by the time of retirement will be worth significantly more than that.
I share this not to brag. But instead to point out that none of us can afford to be complacent about our later life financial planning.
Open every letter.
Hit up every previous employer.
Check your pension statements.
Work your numbers and see if you can afford to contribute more.
Set up a SIPP (self-invested pension plan) if this has been on your to-do list and you haven’t yet done so.
Remember: one pound saved today, will make for a one pound richer future you.
You are not too old. And it is not too late.
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