Action to take now!

Question 1

Do you know roughly how much income you’ll want in retirement?

• NO
  Draw up a budget of how much you expect to spend in retirement using today’s prices but adjusting for known changes – for example, mortgage paid off, no more work-related expenses.

• YES
  Go to Question 2.

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Question 2

Do you know how much pension you can expect from the state?

• NO
  Either request a state pension forecast (see 'Further help') or check your last combined benefit statement (see below).

• YES
  Go to Question 3.

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Question 3

Do you have a rough idea of how much pension you will get from your occupational scheme or personal pensions?

• NO
  Check your last benefit statement (see 'Further help') for each scheme or request a new one. Statements must show in today’s money the pension you might get based on various assumptions. A combined benefit statement also includes a forecast of your state pension.

• YES
  Go to Question 4.

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Question 4

Subtract your expected pensions from your budget of expected retirement spending. Is the answer less than zero?

• NO
  You are currently on track for the retirement income you want. Repeat the check once a year.

• YES
  You are not on track for the retirement income you want. You need to increase your savings (see 'Common questions answered').

April 2009