Midlife MOT

Could you benefit from a financial MOT?

Drive your pension savings with a Midlife MOT

If you’re still in work or close to retirement age, it’s important to assess your financial situation to see if you’re on course for your ideal retirement. But with everyday pressures often getting in the way, it’s all too easy for these plans to get sidetracked.

The government is aiming to address this with its latest update to the Midlife MOT – an initiative designed to help workers in their 40s, 50s and 60s take stock of their work, wellbeing and finances.

Taking a Midlife MOT can be a good way of giving your financial plans a tune up. It can also show how to get your financial wellbeing back in gear to achieve the lifestyle you want in retirement.

How a Midlife MOT can boost your retirement plans

If you think you need support with planning your route to retirement, taking your own Midlife MOT can act as a guide to show where you are on your journey – and what you need to do to reach your desired destination. Here’s a few things to think about while you’re doing this to help your financial planning.

Budget for your future

When using the Money Midlife MOT tool from MoneyHelper, the personalised report you receive can be a useful resource to assess your current financial situation and plan your future.

For example, the report prioritises areas of your finances that can be improved to meet your ideal retirement plans – such as saving more in to your pension or reducing any debts. This can also give a clearer idea of how much money you’ll likely need to save to cover your costs later in life, and help you prepare your budget to meet your retirement goals.

Our retirement planner can also help you estimate how much money you’ll need to live the retirement you want. View the planner in your account.

Keep track of your savings progress

A Midlife MOT can also be a helpful way of regularly reviewing your financial goals and checking if you’re on track to achieve these.

You can refer back to your personalised report from the MoneyHelper app over time to see how you’re progressing with any financial areas that may need improving (and check you’re still on course in the areas where you’re already doing well).

As a member of The People’s Pension, you can also keep a close eye on your pension savings by logging in to your Online Account. Here, you’ll be able to see how much money you’ve saved in your pension pot so far. You’ll also be able to choose from a number of options to help manage your pension – such as being able to combine your old pots or review how your savings are invested.

Plan ahead to support your loved ones

It’s never an easy subject to discuss, but you can use your Midlife MOT to check how far your finances will go to support your loved ones if they outlive you.

After you die, any money you have is usually passed on to your family or friends as part of your estate – either through instruction in your will or through other legal proceedings. Anyone inheriting parts of your estate will typically have to pay inheritance tax to do so.

However, if you have a pension and have nominated pension beneficiaries, these beneficiaries will usually receive your pension savings without having to pay inheritance tax after you’ve gone. This is because the pension payment is usually ‘discretionary’ and not counted as part of a person’s estate.

Get ready for your retirement

We can help you get ready for your retirement.

Improve your financial wellbeing

Read our quick tips to getting your finances in good health.

Combine your savings into one pot

Help keep track of your savings by bringing them all together.