Most people, 75% apparently, don’t realise how much of their pension pot comprises investment growth rather than what they’ve paid in. Typically, if you’ve been paying in for most of your working life, 2/3 of what’s there at the end depends on how and where it’s been invested.
Which makes it still more important to look at the funds available for your workplace pension if you’re in one and organise the various pots you’ll inevitably build up in your working life sooner rather than later – later usually being when the finish line is in sight.
That’s when many come to us with a mish-mash of pots which, had they paid attention sooner rather than later, could have been much bigger. Broad brush, if you’re under 50, don’t sit in a default fund, you have time to take more risk; and don’t leave and forget what you leave behind when you change jobs.
