Wrong retirement date could cost you

If your pension provider hasn’t planned the correct date for your retirement, it could end up costing you thousands.

New figures from pension provider Aviva show that people with workplace pensions (including those who were auto-enrolled) may miss out on up to £10,000 from their pension pot if they don’t keep their provider up to date.

Most people will see their pension pot automatically moved from a high risk to a low risk fund within a certain period before their retirement age. Typically this can be up to 15 years in advance, to safeguard the pot against market crashes, however as more people are increasingly likely to work into their 70s, the pot may be sitting in a low risk fund for longer than intended.

On the opposite side, if you retire early, your pot may not be moved to a lower risk fund for the appropriate period before retirement, and again, this may impact how much you save if there happens to be a market crash just before you cash out.

Make sure you check your pension documentation or speak to your provider if in doubt.

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