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How you can give yourself a break in retirement

What kind of pension do you have? If you have a defined contribution pension, in which your pension income depends on yours and your emplyoyer's contributions and investment performance, then this is the poor relation to the final salary pension or one based on your career average salary. With a DC pension, you are not guaranteed a sizeable nest egg at the end of it. Four out of five workers opt in to their company pension's default fund, which more often than not invests in equities, thus leaving your pension vulnerable when the wind changes and performance slides.

You have investment options when you sign up, so you should review them at regular intervals. Expert in the field Mr Foster has these pearls of wisdom on the subject: 'The key thing to review regularly is what type of investment your pension fund is invested in,' he says. 'How much risk do you want to take? You should consider what type of fund will give you the highest return for the amount of risk you are prepared to take.'

He added: 'Employees should regularly review how much is going into the plan and use the many online tools to project what this might give them. Everybody should find out how much is being paid into their pensions.'

Malcolm Delahaye, director of Supertrust UK, has this piece of advice about pension contributions: that you should aim to save half your age. So if you start at 20 then save 10 percent, and so on.

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