A new year is upon us, writes Tony Watts OBE. What will YOU be doing to ensure your retirement plans are on track? Here are five things to consider…

      1)  Track down any lost pensions

An estimated £19.4 billion is currently lying in pension pots… unclaimed by their rightful owners. That’s hardly surprising as we change jobs (on average) 11 times during our working lives and we don’t always remember to keep tabs on the amounts we have accrued. It may be that you didn’t even realise you were contributing to one…

Tracking them down – even those from jobs from many years ago – is far simpler that you’d think and it is entirely free: don’t be lured onto a commercial site that promises to track down your pensions for a fee! This Government site that will guide you through the process: https://www.findpensioncontacts.service.gov.uk/

      2)  Make sure you will receive your full State Pension

The full new State Pension is £179.60 per week – and while that might not sound a fortune, it can represent excellent value for money in terms of what you contribute: the full amount applies if you have made 35 years of NI contributions.

Don’t assume that you have made that many contributions simply because you have been working for over 35 years: you may, for instance, receive less if you were contracted out for all or part of that time. If you have spent any time self-employed, there is also always a chance that payments could have been missed.

Through the Government Gateway account, you can see your National Insurance history, identify gaps and check whether or not these gaps can be plugged. Each additional year of voluntary class 3 contributions costs around £800. Those who have spent a number of years raising a family or acting as a carer should check that these years have been accounted for: it may be possible to apply for “NI credits” which contribute towards your state pension entitlement.

Grandparents and other family members under state pension age, and who are taking care of children aged 12 or below to enable parents to return to work, may also qualify for “Specified Adult Childcare Credits”.

      3) Consider consolidating smaller pension pots

If you have a number of smaller pots, it might (emphasis on the word “might”!) be worth consolidating them into a larger one – especially if they do not seem to be performing well or they attract expensive fees. However, it is essential to take expert advice before you do this, not least to ensure that you don’t lose out by paying large exit fees or miss out on any benefits.

There are also ‘’Triviality’’ rules that for those aged 55 and over allow you to take the whole of a small pot as a lump sum with 25% of the fund received tax free without affecting your Annual Allowance

       4)  Maximise your tax allowances

Remember that you can contribute up to £40,000 per year to your pension and still claim tax relief – and use the “carry forward” process if you haven’t used up all your allowances over the last three tax years. This can be a particularly helpful move if you have a lump sum available.

Again, you should seek professional advice if you wish to consider this option as there are a number of regulations to be aware of such as the tapering of the Annual Allowance for  ‘’high earners’’.

Also be aware that if you have commenced drawing down taxable income from your pension fund you will be subject to the ‘Money Purchase Annual Allowance’’. This means the maximum gross contribution you can add to your pension funds is £4,000 p.a. and the carry forward option is unavailable.

       5)  Check out if you need to increase your contributions

Here is where your RetireEasy LifePlan really comes into its own, as it will tell you at a glance whether you are currently on track to enjoy the retirement you planned for.

You can check the effect of increasing your contributions by running different scenarios, and (while you’re there!) also test out what the impact might be of receiving an inheritance in the future, downsizing, paying for a wedding, helping out a family member get onto the housing ladder… or just enjoying the holiday you’ve always dreamt of.