If you are mapping retirement targets, contribution strategy, and consolidation decisions together, use the Pension Planning Hub as your central guide.
If you’ve never properly looked at your pension, you’re not alone. Many people find pensions confusing and put off dealing with them. But a pension review is one of the most valuable things you can do for your future. This guide walks you through reviewing your pension for the first time.
Why Review Your Pension?
Your Pension is Probably Your Biggest Asset
After your home, your pension pot is likely your largest asset — yet most people spend more time planning holidays than retirement.
What Can Go Wrong Without Reviews
| Problem | Consequence |
|---|---|
| Lost pension pots | Missing out on money you’ve already saved |
| Wrong investment choice | Poor growth or excessive risk |
| Not saving enough | Retiring on much less than expected |
| High fees | Eroding your pot over decades |
| Wrong beneficiaries | Money going to wrong people if you die |
| Missing employer contributions | Free money left on the table |
What a Review Achieves
- Find all your pension money
- Understand how much you’ll have at retirement
- Check if you’re on track
- Identify improvements to make
- Reduce fees if possible
- Update beneficiaries
Step 1: Find All Your Pensions
Types of Pension You Might Have
| Pension type | Where it comes from |
|---|---|
| State Pension | Government, based on National Insurance |
| Workplace pension | Current and previous employers |
| Personal pension | You set up yourself (SIPP, stakeholder) |
| Old company pension | Previous employers (may be DB or DC) |
Check Your State Pension
Go to: gov.uk/check-state-pension
Log in with Government Gateway to see:
- Your forecasted weekly amount
- Your State Pension age
- How many qualifying years you have
- Gaps you might fill
Full State Pension 2026/27: £221.20 per week (£11,502/year)
You need 35 qualifying years of National Insurance contributions for the full amount.
Find Workplace Pensions
Check:
- Your current payslip (pension contributions)
- Letters from pension providers
- Old paperwork from previous jobs
- P60s (may mention pension contributions)
- Email archives for pension statements
Find Lost Pensions
Pension Tracing Service: gov.uk/find-pension-contact-details
This free government service helps locate pensions from old employers. You’ll need:
- Names of previous employers
- Approximate dates of employment
- Your National Insurance number
Average person has 11 jobs in their lifetime — that could mean multiple pension pots.
Contact Each Provider
Once you’ve identified providers, contact each one:
- Request a current valuation
- Ask for projected retirement value
- Check your beneficiaries are correct
- Request fee information
Step 2: Understand Your Pension Type
Defined Contribution (DC) — The Common Type
Most modern pensions are DC (also called “money purchase”):
- You build up a pot of money
- Your employer (usually) contributes too
- Money is invested in funds
- What you get at retirement depends on how much is saved and investment performance
- You take the investment risk
Includes: Workplace pensions from auto-enrolment, SIPPs, personal pensions
Defined Benefit (DB) — The Valuable Type
Older and public sector pensions:
- Pays a guaranteed income based on salary and years of service
- Employer takes the investment risk
- Often very valuable — hold onto these
Examples: Teachers, NHS, civil service, police, older company schemes
Warning: Never transfer a DB pension without taking regulated financial advice. Many people have been scammed out of valuable DB pensions.
Understanding DC Pension Statements
Your statement should show:
| Information | What it means |
|---|---|
| Current value | What your pot is worth today |
| Contributions | What you and employer have paid in |
| Investment funds | Where your money is invested |
| Charges | Annual fees (management charge, etc.) |
| Projected value | Estimate at retirement (take with caution) |
| Beneficiaries | Who gets it if you die |
Step 3: Calculate If You’re on Track
How Much Will You Need?
Common rules of thumb:
| Lifestyle | Annual income needed | Pot required (4% withdrawal) |
|---|---|---|
| Minimum | £14,400/year | State Pension only |
| Moderate | £31,300/year | ~£500,000 pot (+ State Pension) |
| Comfortable | £43,100/year | ~£800,000 pot (+ State Pension) |
These are the Pensions and Lifetime Savings Association (PLSA) Retirement Living Standards (2024 figures, updated annually).
Simple Rule of Thumb: Age-Based Benchmarks
| Age | Pension pot target (× salary) |
|---|---|
| 30 | 1× your salary |
| 35 | 2× your salary |
| 40 | 3× your salary |
| 45 | 4× your salary |
| 50 | 6× your salary |
| 55 | 7× your salary |
| 60 | 8× your salary |
Example: Earning £40,000 at age 40 → aim for £120,000 saved
Use a Pension Calculator
For a personalised estimate:
- MoneyHelper pension calculator: moneyhelper.org.uk/pension-calculator
- Your pension provider’s tool
- Standard Life or Aviva online calculators
Input:
- Current pension value(s)
- Current contributions
- Expected retirement age
- Expected State Pension
The calculator shows if you’re on track.
Step 4: Check Your Investment Choices
The Default Fund Trap
Most people stay in the default fund — the investment the provider automatically chooses. This isn’t necessarily bad, but:
- Default funds are designed to be “average”
- They may not suit your risk tolerance
- They might not suit your time horizon
Understanding Risk and Time
| Years to retirement | Consider |
|---|---|
| 30+ years | Higher risk/growth funds (equities) |
| 20-30 years | Growth-focused, moderate risk |
| 10-20 years | Balanced, starting to reduce risk |
| Under 10 years | Lower risk, capital preservation |
When young, you have time to recover from market falls. As you approach retirement, protecting what you have becomes more important.
Check Your Fees
Fees compound over decades:
| Annual fee | £100,000 over 30 years (5% return before fees) |
|---|---|
| 0.3% | £389,000 |
| 0.75% | £348,000 |
| 1.5% | £289,000 |
£100,000 difference just from fee differences.
Modern workplace pensions often charge 0.3-0.75%. Older pensions may charge 1-2%+.
Step 5: Check Your Contributions
Auto-Enrolment Minimums
Since 2019, minimum contributions are:
| Who | Minimum contribution |
|---|---|
| Employee | 5% of qualifying earnings |
| Employer | 3% of qualifying earnings |
| Total | 8% |
Important: 8% is the legal minimum — it’s probably not enough for a comfortable retirement.
How Much Should You Actually Save?
Common advice: Save half your starting age as a percentage
| Age started | Total contribution target |
|---|---|
| 20 | 10% |
| 25 | 12.5% |
| 30 | 15% |
| 35 | 17.5% |
| 40 | 20% |
This includes employer contributions.
Check You’re Getting Full Employer Match
Some employers match extra contributions:
| Your contribution | Employer adds | Total |
|---|---|---|
| 5% (minimum) | 3% (minimum) | 8% |
| 6% | 4% | 10% |
| 8% | 6% | 14% |
Free money: If your employer matches extra contributions, contribute at least enough to get the full match.
Step 6: Consider Consolidating
Benefits of Consolidation
- One pot to track
- One statement
- Easier to manage investments
- Potentially lower fees
When NOT to Consolidate
| Situation | Why keep separate |
|---|---|
| Defined benefit pension | Guaranteed income too valuable |
| Protected tax-free cash | Some old pensions have higher than 25% TFC |
| Guaranteed annuity rates | Old policies may have valuable guarantees |
| In-specie transfers not available | Would need to sell and rebuy investments |
| Exit penalties | Some old pensions charge for leaving |
How to Consolidate
- Choose destination pension (your best/cheapest one)
- Request transfer forms from destination
- Provide details of pensions to transfer
- They handle the transfer
- Check money arrives correctly
Tip: Never close a DB pension without regulated advice. For DC pensions over £30,000, consider advice if transferring defined benefit.
Step 7: Update Beneficiaries
Why This Matters
Pensions don’t automatically go to your spouse/partner if you die. You need to nominate beneficiaries.
Check and Update
| What to check | Where |
|---|---|
| Current nomination | With your pension provider |
| Who’s listed | May be outdated (ex-partners?) |
| Percentages | If multiple beneficiaries |
| Trust status | Some nominations are legally binding, others guidance |
After Life Changes
Update beneficiaries after:
- Marriage/civil partnership
- Divorce/separation
- Having children
- Death of a beneficiary
Step 8: Create an Action Plan
If You’re Behind
| Action | Impact |
|---|---|
| Increase contributions | Direct impact on final pot |
| Get full employer match | Free money |
| Review fees/switch provider | More of your money working for you |
| Consolidate | Easier management |
| Review investments | May improve growth |
| Accept later retirement age | More time to save, fewer years to fund |
| Accept lower retirement income | Adjust expectations |
Quick Wins
- Check you’re getting employer match — often quick to fix
- Find lost pensions — may find forgotten money
- Update beneficiaries — important and easy
- Check fees — consider switching if very high
Longer-Term Actions
- Increase contributions gradually — 1% per year until at target
- Review investments — are they appropriate for your age?
- Consider consolidation — after checking guarantees
- Get a forecast — know your numbers
Getting Help
Free Help
| Service | What they offer |
|---|---|
| MoneyHelper | Free guidance, calculators, tools |
| Pension Wise | Free guidance for 50+ considering pension access |
| Citizens Advice | General guidance |
| The Pensions Advisory Service | Part of MoneyHelper |
When to Get Financial Advice
Consider paid advice if:
- You have a defined benefit pension and considering transfer
- Your total pensions are significant (£100,000+)
- Your situation is complex
- You’re approaching retirement and need drawdown strategy
- You’re unsure about investment choices
Cost: £1,000-3,000 for comprehensive pension advice
Find an adviser: register.fca.org.uk
Taking Action: Your First Pension Review Checklist
Phase 1: Find Everything (Week 1)
- Log into gov.uk/check-state-pension
- List all previous employers
- Use Pension Tracing Service for lost pensions
- Gather statements from all pension providers
- Note down each pension’s value
Phase 2: Understand Your Position (Week 2)
- Add up total pension savings
- Check if you’re on track (use calculator)
- Review each pension’s fees
- Review each pension’s investments
- Check beneficiaries on all pensions
Phase 3: Take Action (Week 3+)
- Increase contributions if behind
- Ensure getting full employer match
- Update beneficiaries where needed
- Consider consolidating (if appropriate)
- Set reminder to review annually
Key Takeaways
- Find all your pensions — use Pension Tracing Service for lost ones
- Check your State Pension forecast — gov.uk/check-state-pension
- 8% minimum isn’t enough — aim for half your starting age as a percentage
- Get your full employer match — it’s free money
- Check your fees — high fees compound over decades
- Update beneficiaries — pensions don’t automatically go to partners
- Review investments — default funds may not suit you
- Don’t transfer DB pensions lightly — get advice first
- Start now — the earlier you act, the more time your money has to grow
- Review annually — make it a habit
This guide provides general information about pension reviews in the UK. Pensions are complex — consider consulting a regulated financial adviser for personal recommendations. Your pension value can go down as well as up.