Important – This information is not a personal recommendation for any particular investment or action. If you are unsure about the suitability of an investment you should speak to an authorised fi nancial adviser. During periods of increased market volatility, you may see the value of your investments and pensions drop. This is a normal part of long-term investing as the value of investments can go down as well as up, so you may not get back the amount you originally invest. The treatment of tax is subject to personal circumstances and tax rules may change in the future. In most cases, you cannot access your pension until you are 55.

Check your fi nancial fi tness fi rst With our money check-up tool, you can get your fi nancial wellness score to see how you’re doing and what

you can do to improve your overall fi nancial fi tness at retirement.fi delity.co.uk/money_checkup/

Take control of your day-to-day

Four steps to fi nancial fi tness

Take control of your day-to-daySee how making a budget for any scenario can help.

1Get to know your goalsSave for the moments that matter by paying yourself fi rst.

2

Protect what’s yoursUnderstand the importance of your workplace pension.

3Supercharge your savingsFind out how time could help give your savings a boost.

4

The world around us is constantly changing and we can’t control which way things are going to turn next. What we can do, is focus on the things within our control, like developing positive habits for our health and fi nances.

Focusing on the next, positive step and making small changes, can make a big diff erence to your fi nancial wellbeing over the long term. With that in mind, here are four simple steps you can take today, that can help you improve your fi nancial fi tness.

Whatever’s going on in life, it’s important to take one step at a time, starting with making

a budget. If you’re not sure where to begin, take a look at your last three bank statements

– they should give you a good indicator of your income, spending and where you might

be able to make savings. Once you’ve done that, there are fi ve techniques you can then

use to create your budget at retirement.fi delity.co.uk/budgeting_tips/

Take control of your day-to-day

A good place to begin: list your incomings and outgoingsIf you’re spending less than your income,

you’re off to a great start. Next, you should think about setting up some contingency savings and working out where you could

save a little extra.

Setting up your contingency savings Your budget should cover more than your day-to-day – it’s also a good idea to have contingency savings set aside for

any unexpected fi nancial setbacks. Start by aiming to have a contingency savings plan equivalent to one month’s income.

Though you might want to think about how long you could survive if you lost your job tomorrow. It’s ideal to have at least

three months’ income saved to prepare you and your family for the unexpected.

Sources: Fidelity Retirement Saving Guidelines, Fidelity Global Retirement Readiness Survey 2019; Money Advice Service; Cable.co.uk; MoneySavingExpert; ONS.

Bills Current monthly cost

Swapped monthly cost

Yearly saving

Energy provider £104

£240

£30

£50

£73

£200

£18

£15

£372

£480

£144

£420

Supermarket own brands

Broadband provider

Gym membership

The savings swapAs well as contingency plans, there are other, smaller ways you could save, like through the savings swap.

You’ll be surprised how much you could save by making small changes, like changing everyday suppliers.

1Step

Step 2 – Get to know your goalsFour steps to fi nancial fi tness

Understanding your goals is incredibly important, as is writing them

down. Even if they change in the future, having them

there as a guide will help keep you on track. And

whatever your goals may be, it’s important to know

exactly what your immediate and long-term priorities

are. Before deciding these, it’s good to understand how

much you need to save in order to achieve your goals.

To help, we’ve compiled a list of typical savings goals.

Get to know your goals2Step

Large holidayContingency

savingsHouse deposit Wedding New car

Starting a family

Retirement

£2,240 £6,080 £23,300 £25,000 £25,850 £75,440

7x annual household

income by 68

Average total cost (approx. UK)

Typical savings goals

Sources: ONS Employee Earnings 2019; ONS Family Spending 2020; FLA 2019; Fidelity Global Retirement Readiness Survey 2019; Money Advice Service. Cost fi gures in the example saving goals are rounded to the nearest 10.

The Fidelity Global Retirement Readiness Survey surveyed 2,400 people in the UK on their views about readiness for retirement and the future. Research was carried out via online survey in partnership with Ipsos in September 2019.

Pay yourself fi rstA top tip for saving regularly is to treat it like you’re paying yourself – open a separate savings account and set up a regular standing order to divert savings as soon as

you get paid.

51% of UK adults don’t know how much they need to be saving for retirement.

If you’re unsure how much you need to save, check out our retirement rules of thumb at

retirement.fi delity.co.uk/rsg/They’re here to help.

Step 3 – Protect what’s yoursStep 1 – Take control of your day-to-day

You’re an investorA third of men and half of women aren’t aware their pension is an investment.

Fidelity Global Retirement Readiness Survey 2019.

Your workplace pension is an extremely valuable investment and it’s good to know just

how you can protect it. Because at the end of the day, your savings are just that – yours.

What’s more, it’s also topped up by your employer, as they contribute alongside you. The

Government even helps with tax relief on combined contributions up to £40,000 every

year for most people (please note: this fi gure is based on personal circumstances and

tax rules may change). Overall, these top-ups make up a powerful long-term investment

that’s likely to grow over time, making it one of the most valuable benefi ts of working.

Protect what’s yours3Step

One way you can protect your pension, is to make sure your provider

knows who you’d like your pension paid to, if the worst should happen.

This is called nominating a benefi ciary, and can be done by completing

an Expression of Wish form. It’s quick and easy, and means that your loved

ones benefi t from your pension, should you pass away. You can nominate

one person, or divide it between family, friends and charities – it’s up to you.

It’s also a good idea to get to know your pension. Log in to PlanViewer at

retirement.fi delity.co.uk/planviewer_login/ to see how much you have

saved and how much you’re contributing each month. Understand where

your pension is invested and check that your target retirement age is up

to date. You are not legally obliged to retire at this age, but it means that

if you are invested in a default lifestyle investment strategy, it will work to

protect your money in line with your goals, and help make sure that you’re

invested in the right place at the right time.

Remember, you can’t normally access your pension until you’re 55, and until

then it’s a good idea to regularly review your savings, to make sure they’re

right for your retirement goals.

Step 4 – Supercharge your savingsStep 2 – Get to know your goals

What is compound interest?Compound interest means you earn interest on the interest that’s already

built up on your savings. So even if you don’t add any more, it’ll still continue

to grow. In a nutshell, it works by accumulating over time and can turn a

small pot into a signifi cant amount.

When it comes to saving, the longer you can contribute,

the longer your money will have to grow. This is a way of

supercharging your savings using the power of compound

interest – let’s get to know what this term means.

Supercharge your savings4Step

Compounding works best when you

contribute regularly, and the more time

you give your savings to grow, the more you

could get out.

Growth rates based on 5% per annum in line with FCA central rate, minus 1.1% standard charges. Pot size data based on current value only to demonstrate compound growth and does not account for any contributions or withdrawals.

Please note that this guidance tool is not a personal recommendation in respect of a particular investment. If you need additional help, please speak to an authorised fi nancial adviser. You should regularly reassess the suitability of your investments to ensure they continue to meet your attitude to risk and investment goals. The value of your investments may go down as well as up and you may get back less than you invest.

400 5 10

10k pot

20k pot

40k pot

15 20 25 30 35

It’s all about timeSay you’ve saved £10,000 into your workplace pension. The power of compounding means if you

don’t make any further contributions or withdrawals, your money will continue to grow, making a

big diff erence over time. In the graph below, you can see how this initial investment could gain

over £30,000 in compound interest alone over 40 years. And it doesn’t matter if you’re just starting

to save or are well into retirement, you can still see the positive eff ects of compound interest.

Source: Fidelity Retirement Saving Guidelines, Fidelity Retirement Guidance Tools 2020.

£200,000

£180,000

£160,000

£140,000

£120,000

£100,000

£80,000

£60,000

£40,000

£20,000

£0

Keep calm and stay on trackStep 3 – Protect what’s yours

Just by completing these four simple steps, you’re already in a better position

to stay fi nancially fi t, especially through times of change. And when it comes to

markets changing, you can check our tips for managing your pension through

market volatility at retirement.fi delity.co.uk/avoid_pension_panic/

Keep calm and stay on track

Remember, to stay on track:

Check your progress and adapt your

plans if needed.

Start small and work your way through

the steps we’ve provided today.

Check out even more

tips and tools on our website.

Find out moreLog in to PlanViewer at fi delitypensions.co.uk or download the app.

Issued by FIL Life Insurance Limited (Reg No. 3406905). Authorised in the UK by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered Offi ce at: Oakhill House, 130 Tonbridge Road, Hildenborough, Kent, England TN11 9DZ. Fidelity, Fidelity International, the Fidelity International logo and the F symbol are trademarks of FIL Limited. CWIUK0031/0721

Step 4 – Supercharge your savings Four steps to fi nancial fi tness