Reaching the retirement you want – Part 3: how to close any income gaps

It can feel a bit overwhelming thinking about the amount you’ll need for the future, especially if you discover there might be an income gap. But there are plenty of things you can do right now that can make a difference.

Increase your contributions
Make the most of the pension contributions from Cummins and make sure you’re getting the maximum 9% from the Company, a valuable way to boost your pension fund. 

If you’re already getting the maximum Company contribution, you can pay additional voluntary contributions (AVCs), which aren’t matched by Cummins. You can pay regular AVCs or one-off AVCs, for example, when you get your variable compensation. 

Paying into your pension is a tax-efficient way to save for retirement. Find out how much it actually would cost you by using the cost calculator.

Change your target retirement age 
If your plans for when to retire have changed, make sure you update your target retirement age to match. Changing when you stop working will have an impact on the amount in your pension fund at retirement. 

Track down all your pensions
When you’re working out your retirement income, don’t forget to include any other workplace pensions you may have. It’s very common when people move jobs several times through their career that they lose track of some of their smaller pensions. Dig out the details for these and check your balance and any charges. You might find it’s better to consolidate your smaller DC pension pots into one. For more details about this, contact your provider or Isio.