As the year comes to an end, it is a perfect moment to pause and review our progress, especially our finances and pensions. While this write-up focuses on your pension, the steps shared can also apply to your overall financial health.
Many people, especially younger earners, often view their pension as a distant concern. However, your pension is one of the ways to create and shape your desired financial future today.
Here are some steps to help you review your pension fund performance this year and create your desired future in the New Year:
1. Review Your Pension Contributions for the Year: Take time to go through your pension contributions for the year and ensure every month is accounted for. Check for omissions or discrepancies in remittances, and address any issues immediately so that your Retirement Savings Account (RSA) remains up to date and continues to earn optimum returns.
2. Evaluate Your Fund Performance: Your pension is an investment, so it is important to understand how it performed this year. Review your RSA statement to see how your fund has grown, whether it aligns with your age and risk appetite, and whether switching fund types could offer better long-term returns. To review the various pension fund types, click here.
3. Consider Making Additional Contributions: Boost your savings through the Personal Pension Plan (PPP), which allows you to make voluntary additional contributions. Thanks to compounding interest, even small, consistent voluntary contributions can increase your pension balance significantly over time. Your additional contributions also enjoy the same returns as your regular pension and could also help reduce your tax liabilities.
4. Set Clear Goals for 2026: Reflect on your desired financial future and how well your current savings align with it. Break long-term goals into yearly targets, note this year’s closing value, set your desired closing value for next year, calculate how much you need to save to reach it, and consider starting an additional pension savings plan (Personal Pension Plan) to help achieve your goals.
Your pension is a powerful tool for your future, and the effort you put in today shapes the comfort you will enjoy tomorrow. Take time this December to review your progress and plan intentionally for 2026; your future self will thank you!
To track your contributions and stay on top of your pension, kindly download our mobile app.
