Things to do for future you

When interest rates are good, make the most of what your savings account offers, so you don’t miss out. Separately, it can also be a good idea to review any pension schemes and consider consolidating them. We explore the reasons why.

Look at your savings

There are many things you can do to try to future-proof your finances. For instance, if you have a high-interest savings account, you could keep feeding it every month to maximise the returns on your growing balance. The phrase 'time is money' could apply here, as the sooner you start, the better the results for your balance as it builds on itself.

A regular review is especially important because your interest rate may drop down to a lower rate (following any introductory period when you opened the account).

Depending on your account and provider, you may have to save a minimum each month. So even if you’re just meeting the minimum, it should make a difference. Look for the small print, as there may be upper limits on the amount you can deposit each month, as well as restrictions on when you make withdrawals.

Review your pensions

Depending on how long you’ve been working and how often you’ve switched jobs, you may have more than one pension scheme. It’s worth taking a look at the annual rates of return and the fees you're paying. Your pension providers should send you annual statements to keep you updated on how much your account contains and its rate of return.

If the fees and returns seem competitive with other providers, you might decide to keep your pension where it is. But if you start to look around at other options, you may find you want to switch.

For example, switching from paying 0.95% in annual fees to 0.35% could save you hundreds of pounds a year (depending on how much is in your pension):

• Let’s say you have two pensions and two separate fees for each one. The first has a balance of £80,398 with fees set at 0.95%. That means you’re paying £763.78 in annual fees.
• Your second pension pot contains £80,310 with the provider charging 0.35% in fees, which comes out at £281. That’s £1,044.78 a year in fees for both pensions.

If you decide to combine (or consolidate) both of these pensions into one pot (totalling £160,708) with fees set at 0.35%, your annual fees would only be £562.48, saving you £482.30.

Pension consolidation could help you organise your pensions and better manage them when they’re in one place. It often simplifies paperwork too and, as we’ve shown, could save you money in fees. This all adds up to more money building in your pension, helping to boost your future financial security.

Consolidating pensions can be as straightforward as filling in a few forms, but if you’re not sure about something, speak to an adviser first. It’s important to note that if you’re thinking about transferring a pension, you could lose some of its guarantees or benefits if you transfer, so you should check this. You might also need to pay exit fees. It’s also important to write to your old pension providers to let them know if your address changes. You can help locate old pensions by using the Pension Tracing Service (Opens in new window)

You can’t predict the future, but you can take steps to help future-proof your savings, including pensions, as much as you can – sooner rather than later.

Looking for somewhere to keep your savings? Bank with Chase and you can open a saver account. Start saving with as little as you like, and we’ll calculate your interest daily and pay it monthly.

18+, UK residents. A Chase current account is required to open a saver account.

Recommended reading

• Finding a financial adviser
• What is pension consolidation?
• Tips on improving your financial health

Disclaimer: As with all investing, your capital is at risk. The value of your portfolio can go down as well as up, and you may get back less than you invest. Before you consolidate or transfer, check you won’t lose any guarantees or benefits and that you know what charges you may incur. During any transfer, your investments will be out of the market. If you are unsure if a pension is right for you, please seek financial advice.