Lessons from A Christmas Carol for better retirement planning

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I love all things Christmas, especially the story of the A Christmas Carol. Whether it be reading the book, going to the theatre or watching the version with the Muppets on television, I love the story of how miserly Ebenezer Scrooge was encouraged to embrace the joy of Christmas and live a better life.

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What would the ghosts of Christmas past, present and future have to say if they came to visit any one of us and took a look at our long-term financial planning?

Would the look to the future be a good one where we’ve got enough to live on in a happy retirement, or would it be a bit more frugal? Luckily, there is plenty we can do to improve our retirement outlook.

Scrooge, played by Reginald Owen, speaks to his dead business partner Marley, played by Leo G Carroll during 1938 film A Christmas Carol. · Bettmann via Getty Images

When we ask people what their biggest retirement regret is then over a quarter (27%) say they wish they had started planning earlier. A further 22% said they wish they had contributed more, while 12% said they regretted assuming they would have enough to live on.

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The best way to avoid retirement regret is engage with your pension as soon as possible. Even making small steps now – for instance increasing your contributions – can make a massive impact over time. If you have a bit of spare time this festive season, then it’s a good idea to put a plan in place so you have no pangs of regret in years to come.

So, what would the Ghost of Christmas Present have to say if they took a poke through your pension paperwork? Would they breathe a sigh of relief by seeing you’ve got all your pensions accounted for and that you are making them work as hard as possible? Or would they find holes in your planning with lost pensions?

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Research from the Pensions Policy Institute shows that more than three million pensions have gone astray, and this means people could be missing tens of thousands of pounds that could make a huge difference to how much they end up with.

Make a note of all your employers and check to see if you have pension paperwork with them all. If you don’t then contact the government’s Pension Tracing Service. You will need either the name of your provider or employer. The service can’t tell you if you have a pension with them but they can give you contact details so you can get in touch.

(Original Caption) Reginald Owen, playing Scrooge, confronts the Ghost of Christmas Present, played by Lionel Braham, in the 1938 MGM production of — Scrooge, played by Reginald Owen, confronts the Ghost of Christmas Present, played by Lionel Braham, in 1938 movie A Christmas Carol. · Bettmann via Getty Images

Once you’ve got your pensions together it may make sense to consolidate them. Having an overarching view of what you have can save you time, money and admin. It can also improve your retirement decision making. However, before you do so make sure you won’t incur expensive exit penalties or lose benefits such as guaranteed annuity rates.

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