How retail workers can set up a pension

Do you work in the retail sector and want some guidance in setting up your pension? Understanding, planning, and tracking your pension fund can become a bit complex.

Thankfully, these days there are technology tools to help. Here we have outlined setting up and managing your pension fund.

Set a budget

Setting a monthly budget is the first step to calculating what you can contribute to your pension fund.

There are now many budgeting apps, some free and some paid, that help you track precisely what you spend, allow you to set limits, and avoid mismanaging your finances.

Some of the best that can help manage your pension fund include Personal Capital and Simplifi. Budgeting apps allow you to add your loans, investments, and pension.

It will then track how well you are doing and compare your budget to previous months, meaning you can adjust and make changes quickly. All your accounts can be linked to one app, including your pension account. 

Start a pension investment fund

Whether you work in a retail job part-time or full-time, it is advisable to start contributing towards a private pension fund as soon as possible.

There are now many easy to use private pension providers to choose from, including Interactive Investor, Moneyfarm, Netwealth, and PensionBee, to name a few. You simply open an account and select a fund type, including ready-made pensions that don’t require any investment knowledge.

When selecting your pension provider, take into consideration your account size, minimum contribution, and annual fees. When evaluating your choices, pension fund performance is a key metric to watch. Also, consider what investment options the providers' app offers, for example, ETFs, Stocks and Shares, Commodities, or FX trading.

On the one hand, an app like PensionBee provides a solution for keeping multiple pensions in one pot. In contrast, Moneyfarm is the better option if you are looking for an app for robo-adviser investing tools. 

Calculate pension contributions

It is said that by the time you are 40 years old, it is prudent to contribute around 20% of your salary to a pension fund.

Whether you are receiving a state pension, retail workplace pension, or have set up a private pension fund, keeping track of everything, including tax benefits, can be overwhelming. This is where pension calculators come in. 

Calculators give you a clear picture of your financial future, enabling you to check your sums periodically and make sure you are still on track to reaching your retirement fund goals. For example, you can access super simple calculators from a browser.

These calculators are designed to help you plan toward an early retirement goal. You enter your income and savings, which will give you the years it will take you to reach retirement, and the percentage savings rate is super easy and free. 

Thankfully, you no longer need expensive assistance from a pensions expert to manage your pension fund properly.

With a bit of research and the right tools, including some easy to use apps, you can set up your pension fund and even plan for early retirement.

Unfortunately, private pension funds have been the target of scammers, so always check that the pension application you choose is regulated in your jurisdiction.