Research retirement savings options

People research retirement savings options as though the task were choosing between products, when the first and most valuable step is finding out what you already have. Most workers have at least one pension they have never logged into, invested in a default fund they have never looked at, charging a fee they have never checked.

Why research retirement savings options is worth an hour

The three biggest levers are all available before you choose any new product: capturing the full employer match, knowing your fee, and knowing your contribution rate. Employer matching is an immediate uplift with no equivalent anywhere else. Fees compound against you over decades. Both are usually adjustable in a few clicks once you actually log in.

How to research retirement savings options step by step

1. 1

   Find every pension you hold

   Including ones from old employers. Most people have more than they remember, and small pots are easily lost entirely.

2. 2

   Check the employer match ceiling

   Find the maximum your employer will match and whether you are hitting it. This is the highest-value number in the exercise.

3. 3

   Look up the annual charge

   Expressed as a percentage. Compare against alternatives, and project the difference over the years you have remaining.

4. 4

   See what fund you are actually in

   Almost everyone sits in the default. Check whether its risk profile suits your age and how long you have.

5. 5

   Write down what you did not understand

   Take that list to your provider or an adviser. Pension documentation is dense and the questions are usually free to ask.

Tips to get more out of it

• Increase contributions when you get a raise, before the higher income becomes normal. It is the least painful moment to do it.
• Government tracing services exist for lost pensions in many countries and cost nothing to use.
• Consolidating old pots can reduce fees, but check for exit penalties and lost guarantees before moving anything.

Ways to mix it up

If you are self-employed, the hour goes on choosing a private pension and setting a realistic contribution, since nobody is doing it for you. If retirement is close, spend the time on what your provider offers at drawdown instead, where the decisions become harder to reverse.

Research retirement savings options: frequently asked questions

This guide is general information, not professional financial advice. See our disclaimer.