A new year often brings changes, including salary increases for many employees. While a pay rise is welcome, it can also be an ideal moment to pause and consider whether your pension arrangements are keeping pace with your growing income. Small adjustments made now, such as reviewing your contribution level or investment approach, can have a significant impact on your long-term retirement outcomes and help ensure your future plans remain on track.
Increase your contributions
A higher salary may give you the flexibility to contribute more towards your pension without affecting your current lifestyle. Even a small increase in your contribution rate can make a meaningful difference over time, thanks to compounding and the long-term nature of pension investing. Higher contributions may also allow you to benefit from a greater level of tax relief, especially if your pay rise has placed you in a higher tax band. And if your employer offers matching contributions, increasing your own can help you make the most of this benefit, effectively boosting your retirement savings even further.
If your pension plan is enabled for electronic administration, you can easily update your contribution rate at any time through Ancoria OnLine at online.ancoria.com.
Review your investment strategy
This may also be a good time to review how your contributions are invested. As your income grows, your capacity to take investment risk may change. Ensuring your investment strategy still aligns with your goals and time to retirement can help your savings grow efficiently while staying within your comfort zone.
Through the Ancoria Pension Funds, you can choose an investment strategy that reflects your personal circumstances and objectives. Explore the full range of Ancoria Pension Funds here to compare their objectives, asset allocations and risk levels. You can amend your investment choices at any time through Ancoria OnLine.
Check your projected retirement income
Before deciding whether to adjust your contributions or investment strategy, it can be helpful to see how these choices may affect your future benefits. Our Retirement Income Calculator allows you to estimate your projected income at retirement based on different contribution rates and investment styles. This can help you see whether you are on track to achieve your desired retirement lifestyle and identify any changes that could bring you closer to your goals.
We are here to support you through every step. If you have any questions or would like to discuss your options in more detail, do not hesitate to get in touch with us at +357 22 551 300 or info@ancoria.com.