Whatever your path, your pension remains a central source of income, offering security and playing a major role in the legacy you’ll leave behind. With Pension Awareness Week taking place from 15 to 19 September, now is the perfect opportunity to reflect on how your pension is working for you and for those you care about.
What the research tells us
Even though pensions often become one of the largest assets people hold, confidence around them can still be low. Recent research1 revealed that one in five people don’t know what type of pension they have. More than half aren’t sure where their money is invested. Nearly seven in ten have multiple pension pots, and some don’t know how many. Many are unaware that the government adds tax relief to contributions.
Encouragingly, a quarter of people have increased their contributions, showing that when the benefits are clear, people take action. For those already in retirement, the lesson is the same; staying engaged with your pension is key to maintaining flexibility and peace of mind.
Beyond the State Pension
The State Pension is a helpful foundation, but for most people it is not enough on its own. Even if you qualify for the full amount, it provides just under £12,000 a year, enough for some basics, but unlikely to cover the lifestyle you’ve worked towards.
That’s why pensions and other savings are so important – they can turn retirement into a time of freedom and enjoyment, not financial restriction.
Living the retirement you want
The Pensions and Lifetime Savings Association (PLSA) explains three Retirement Living Standards to help picture what different lifestyles look like for a single person:
- Minimum – around £13,400 a year, covering essentials with limited extras
- Moderate – about £31,700, offering more flexibility and security
- Comfortable – roughly £43,900, providing greater choice, from extended holidays to more leisure activities.
These benchmarks don’t include housing costs; many people also want to budget for helping children or grandchildren, funding care if it’s needed, or leaving a meaningful legacy.
Making your pension work for you
In later life, the focus often shifts from building wealth to enjoying it and ensuring it supports the people and causes you care about. That might mean reviewing drawdown strategies to make sure income remains sustainable, checking investment choices still match your risk appetite, or simplifying multiple pension pots to make them easier to manage.
If you have other assets, such as property or investments, it’s worth reviewing how they sit alongside your pension to provide both flexibility now and security later.
Pensions and your legacy
For many, pensions are not just about income, they are also a vital part of legacy planning. This is an area of change – planned rules to pensions and Inheritance Tax (IHT) make it essential to keep your plans under review. High-value estates in particular should consider the impact of IHT, annual gifting allowances and the use of trusts.
Your financial planner can help ensure your pension strategy supports both your retirement income needs and your legacy goals, giving you confidence that wealth will be transferred in line with your wishes.
Planning ahead with confidence
Later life should be about clarity, comfort and control. Reviewing your pensions and wider financial plan now can reduce stress for you and your family, while helping you enjoy the years ahead with greater confidence.
Your financial planner can support you in making the most of your pension today, while ensuring it plays the role you want it to in the legacy you leave behind.
Enjoy today, protect tomorrow
Pensions are powerful. They give you income, security and the opportunity to create a meaningful legacy. By reflecting during Pension Awareness Week, you can take steps that protect both your lifestyle and the people you care about most.
Your life. Your money. Your future. Let’s give your pension the airtime it deserves.
1Aviva, 2025
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.