Making Money

How to fix your pension before it's too late

39 snips
Aug 25, 2025
Alice Guy, former Head of Pensions at Interactive Investor and a qualified chartered accountant, shares her expertise on maximizing your defined contribution pension. She breaks down essential strategies like salary sacrifice and how to effectively claim tax relief. The conversation covers common pitfalls that could cost you thousands, and the importance of proactive saving, especially for self-employed individuals. Guy emphasizes understanding your pension options and the value of personal investment to secure a comfortable retirement.
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ANECDOTE

Pension Discipline For The Self‑Employed

  • Alice Guy shares she's self‑employed and uses pensions because she can’t touch the money.
  • She prefers pensions to ISAs to avoid dipping into savings too often.
ADVICE

Use Carry‑Forward To Boost One‑Off Contributions

  • Use carry-forward to use up to three years of unused pension allowance when you have spare room.
  • Remember the annual cap (usually £60k) and that employer contributions count too.
INSIGHT

Retirement Targets Depend On Housing And Timing

  • Retirement needs vary widely; the PLSA suggests £300k–£500k for a moderate standard at state pension age (excluding housing).
  • Retiring earlier or renting requires a significantly larger pot.
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