Forgetting to name a beneficiary, losing track of past pensions and focusing too much on the big numbers are common mistakes when it comes to to save for retirement but it’s never too late to remedy these incidents and get back on track.

Living off your pension may seem like a long way off, but the earlier you can save, the more you’ll have when you stop working.

For a comfortable retirement, a single person should aim for £31,300 to live on, while for couples it’s £43,100, according to the Pensions and Lifetime Savings Association (PLSA).

A comfortable life will be different for everyone. Yet, rectifying common problems mistakes with your retirement plan as soon as possible will help you a lot when it comes to retirement.

Here are ten of the most common mistakes people make with their pension – and how you can fix them.

Forgetting or losing a pension

There is currently around £31.1 billion in 3.3 million lost pension funds in the UK, according to the Pension Policy Institute.

This represents an average of £9,468.93 lost for each person.

Pensions are lost when the holder cannot be located, usually because they have not updated their details with their pension provider. Since the introduction of auto-enrolment in 2012, around 11 million people have started saving for retirement for the first time, but these sums are often lost when they change jobs.

If you think you have lost a pension, the first thing to look for is any documents or emails from your pension provider. If you can’t do anything, there is a free pension search service of the government. They can give you the details of a previous pension provider, and you will then need to contact them to find out the details of your savings.

Clare Moffat, pensions expert at Royal London, explains: “A good place to start is to think about all the jobs you’ve had during your life, even if you’ve only been there for a relatively short period of time.

“From here you can either contact your former employers directly to inquire about the pension or use the pension finder service. You should be able to recover lost pensions at no cost to you.

Not taking advantage of tax breaks

You can benefit from generous tax relief when saving for a pension, provided you because you are asking for the right tax relief.

Usually you will receive a 25 per cent top-up from the government when you put money into your personal pension. However, if you are a higher rate taxpayer, you may need to file a tax return to benefit.

“If you are a higher or additional rate taxpayer, you are entitled to an extra top-up from the government, but this must be claimed via a tax return,” said Brian Byrnes, head of personal finance at Moneybox.

“In the case of employer pension schemes, this process happens automatically and no tax return is required to benefit from the tax relief.

“As such, if you are a basic rate taxpayer it will cost you £80 to add £100 to your pension. If you are a higher rate taxpayer you will only pay £60 and for additional rate taxpayers just £55 to get £100 in your pension pot. The rest is supplemented by government tax breaks,” he said.

Say no to free money

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Many employers will match the amount you save in a workplace pension scheme. This means you effectively get free money to put into your retirement pot.

Employees typically contribute 5 percent while employers contribute 3 percent, but many pay more. It’s worth asking your company what they offer and whether more money will be available if you increase your contribution.

If you haven’t checked your pension for a while, it’s also worth reviewing how much you’re saving and whether you can increase that amount. Getting a raise or receiving money from a windfall can be a good reminder to check how much you have banked for retirement.

Forgetting to name a beneficiary

If you have not named a beneficiary to receive your pension in the event of your death, your pension provider will decide where the money goes, as pensions are not automatically covered by a will, if one exists.

This is why it is important to complete an “expression of wishes” form with each pension fund. This indicates the person(s) you choose to receive the money.

Mr Byrnes adds: “While it may be the last thing on your mind right now, knowing what will happen to your pension if you die before you retire and making sure it goes to people you want, is an important thing to think about. about.

“Completing these forms with each pension provider and keeping them up to date throughout key life events such as marriage, divorce and family changes will therefore be very important to ensure your money goes to who you want it to go to. »

Not starting early enough

It’s never too early or too late to start saving for your pension.

There are many free pension calculators you can use to predict how much you will have when you stop working. By checking them, you can calculate how much you will need in your kitty and the difference that increasing your contributions can make.

Helen Morrissey, head of pension analysis at Hargreaves Lansdown, said: “A common mistake is to think it’s too late to build a decent pension and therefore not bother to make the commitment.

“It’s never too late to make a difference. Your contributions combined with tax relief, your employer contribution and the growth of your long-term investments can really combine to give your savings a real boost.

Neglecting your state pension

The State Pension is up to £221.20 per week, if you have paid enough National Insurance (NI) contributions. You can check how much you are likely to get with the The free government tool. To get the full amount, you’ll need 35 years of contributions, and even if you’re not working, you’ll still be able to claim those years.

If you are unemployed, for example if you are on maternity or paternity leave, you can claim NI credits which count towards your qualifying years. It is also possible to purchase additional years in the event of a deficit.

Focusing too much on the big numbers

It can be daunting to look at the figures used by the pensions industry to determine what a person should aim for in retirement. But it’s important to remember that this is just a guide and it’s more important to focus on what you can put away now.

“By focusing on the end goal and that ‘big number,’ saving for retirement can often seem like an insurmountable goal,” says Byrnes.

Instead, he suggests savers focus on what they can control today.

“Your contributions, those of your employer and government tax breaks will add up faster than you think if you stay consistent”

Not investing for the long term

How much you put into your pension and when you start saving are the main factors that determine how much you will have in retirement. However, where your pension is invested can have a big impact.

Pensions are a long-term investment, between 30 and 50 years, and a lot can happen during that time. If you have a workplace pension plan, your investments will usually be chosen for you and your money will be placed in a default fund.

However, Charlene Young​​​​, pensions and savings expert at AJ Bell, said “different default funds have very different investment strategies, meaning they offer different investment outcomes for their members”.

She adds: “Although people’s attitudes to risk differ, younger investors can generally tolerate greater fluctuations in the value of their pot in the short term because they do not need to ‘access money before decades.

“Historically, those willing to accept short-term market declines have typically been rewarded with long-term returns. »

So it’s worth reviewing your investments to check you’re happy with where the money is and the level of risk you’re taking. You may be comfortable with the choices made, but if not, you can ask to choose your own investments from the range available to you.

Withdrawing your pension too early

It’s possible to access your pension pot at the age of 55, but it could be a long time before you stop working. It’s important to look at retirement forecasts to see how far your pot will stretch and also take the state pension into account.

Ms Moffat warns: “It’s much easier to spend a lump sum if it’s in a bank account, so it’s important to plan what you’re going to do with it.

“Receiving financial advice before retirement can help you and you can determine when or when to withdraw tax-free money and how much to take. »

Paying too many fees

Older pension funds may have higher fees than more modern funds and could eat into your overall income.

The amount you pay will be shown as your annual management fee and you can find it on documents like your annual statement. There is a 0.75 per cent cap on fees charged to pensions under the auto-enrolment scheme, so it’s a good figure to compare the costs you’re paying with.