Step 1: Find out what you’ve got
Start by tracking down all your pensions – including any workplace pensions from previous jobs. You can use the UK government’s free Pension Tracing Service to find lost pensions. Make a list of each one, the provider, and roughly how much is in there. You might be surprised by what you’ve built up without realising.
Step 2: Understand the basics of how pensions work
Your pension is essentially money set aside now to give you an income when you retire. There are different types:
- Workplace pensions – your employer contributes too (often matching what you put in)
- Personal pensions – you set these up yourself
- State Pension – you’ll get this from the government when you reach State Pension age
The key thing to know: pension contributions get tax relief, which means the government tops up what you pay in. It can be one of the most tax-efficient ways to save for your future.
Step 3: Check you’re on track
Most pension providers have online calculators that show you a forecast of what your pension might be worth when you retire. Log into your pension accounts or check your annual statements – they’ll give you a projection based on what you’re currently contributing.
Ask yourself: does this look like enough to live on when I stop working? Remember, the State Pension alone is around £11,500 a year. Most people need more than this to live comfortably.
No judgement zone: If the number feels low, you’re not alone. The important thing is you’re looking at it now.
Step 4: Know your options to boost it
If your pension forecast doesn’t look like enough, here are some ways you could increase it:
- Increase your contributions – even small amounts added now can make a big difference over time thanks to compound growth
- Check you’re getting full employer contributions – some employers will match higher contributions, so you could be leaving free money on the table
- Don’t opt out – opting into your workplace pension means you get employer contributions and tax relief
- Consider consolidating – bringing old pensions together can make them easier to manage (but check for any exit fees or loss of benefits first)
You don’t have to do everything at once. Pick one thing that feels manageable.
Step 5: Make it a yearly check-in
Set a reminder to review your pensions once a year – maybe just after your birthday or at the start of the financial year. Check your statements, update your projections, and see if you need to adjust anything.
The more familiar you become with your pensions, the less overwhelming they’ll feel. And the earlier you engage with them, the more options you’ll have.
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