Day 26 of 28 Days Richer
One thing each day that puts money in your pocket and takes 5 minutes or less.
99% of people are in their pension’s default fund and have no idea how it’s actually doing.
Your pension is invested somewhere – but most people never check where, what the fees are, or how it’s performing.
Why This Matters
Not all pension funds are equal.
Some default funds charge way more than others. Some perform significantly worse.
A 1.5% annual fee versus a 0.3% fee doesn’t sound like much, but over 30 years it could cost you tens of thousands in lost growth.
And 6 in 10 people don’t even know their pension is invested at all. They just see money disappearing from their payslip.
Today’s 5-Minute Action
Log into your workplace pension – NEST, Scottish Widows, Aviva, whatever you’re with. Find out three things:
- What fund your money is invested in
- What the annual fees are
- How it’s performed over the last 5 years
If the fees are over 1%, that’s a red flag.
If performance has been consistently below average, it might be worth switching to a different fund within your scheme.
You could also start a personal pension to give you more options.
What to Look For
Most workplace pensions let you switch between funds.
Look for low-cost index trackers or global equity funds.
Fees should ideally be under 0.5%.
Past performance isn’t guaranteed, but consistent underperformance over 5+ years is worth questioning.
The Long Game
Five minutes checking now could mean tens of thousands more at retirement.
Your future self will thank you for paying attention.
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