How I got my retirement savings on track with PlanViewer

I started working at a small advertising agency in 1993. They didn’t offer me a workplace savings plan and I didn’t think to ask. It wasn’t until I moved to a larger agency three years later, that I started saving for my future. Over the years I saved slowly and steadily until I started freelancing in 2009. When I stopped saving for my retirement… for 12 whole years.

If you’re of a certain age, self-employed or have taken a career break - for whatever the reason - this start/stop approach to saving for your retirement might strike a chord. And you wouldn’t be alone.

Time to pay my retirement savings some attention

My first step to getting my retirement savings back on track, was a little shock therapy. I couldn’t bury my head in the sand any longer. I wanted to see the potential damage I’d done to my retirement pot by not paying into it for all those years. So, I did a rough calculation.

And I estimated that if I’d followed the recommended government minimum contributions for the UK - where I’m based -  I’d have lost out on £400 per month in contributions for 12 years. This equates to a whopping £57,600. A figure that doesn’t even take into account any gains or compound interest that I’d have hopefully made over the years.

It terrified me. But it also hardened my resolve. It was time to act.

PlanViewer - my new best friend.

My next step was to download PlanViewer - Fidelity’s workplace pension app. It’s easy to set up and use. 

Find out more about PlanViewer and how to set it up

What I like about it, is that it’s more than just a dashboard (although being able to see what’s in it is obviously really useful too). It offers a broad range of tools, calculators, articles, guides, webinars and tutorials, that together can help you make the most of your retirement savings.

So, if you’re looking to get your retirement savings back on track, here are a couple of features that really stood out. It’s certainly helped me.

1. My Plan - a retirement savings calculator
   
   MyPlan is a retirement planning tool designed to help estimate your future retirement savings and income. To use the MyPlan calculator, you input details such as your age, annual earnings, current retirement savings, and monthly savings contributions. The tool then takes your answers, along with assumptions about market performance and other factors, to project your potential retirement income.
   
   I found it really useful to help me visualise my retirement savings progress and understand how different savings rates and investment styles might affect my future financial security.
   
   Needless to say, it showed that if I kept saving the way I do now - my retirement savings wouldn’t reach my target. It’s a much-needed wake-up call. Seeing the projected shortfall has given me the motivation I need now to secure a more comfortable retirement later.
2. The Power of 1%
   
   This principle shows how small changes can have a big impact on your retirement savings. By increasing your retirement savings contributions by just 1%, you can make a big difference to your final retirement savings pot.
   
   The Power of Small Amounts tool lets you try out different contribution rates. It shows you in real-time how even small adjustments can greatly improve your retirement savings. So, for example, If you’re 30 and you earn £40,000, increasing your savings by 1% could add an additional £73,600 to enjoy life at 68.
   
   I’ve since upped my contributions by 2% to put me on target to have what I would consider a comfortable retirement income. Anything else will be a bonus.
   
   Calculate what a small amount can mean to you with our useful tool.

A final note… the power of staying invested

The other thing that MyPlan showed me, was what the power of staying invested looks like over time. Quite simply, if I don’t touch my retirement savings until I really need them, they have the potential to grow. It made me think how helpful this could be in offsetting the effect of inflation on my retirement savings down the line. One thing I know for sure, is that a £5,000 holiday won’t cost the same as it does now in ten years. It will cost a lot more. And that’s something I need to consider before dipping into my savings.

Of course, it’s always wise to have some cash for emergencies - around six months income should be enough. But if I want my retirement savings to last as long as I do and support the lifestyle I want for myself, I need to think carefully before cashing in any retirement savings plans.