What the research tells us
Pensions are central to long-term financial wellbeing, yet many people don’t feel confident about them. Recent research1 revealed that one in five people don’t know what type of pension they have. More than half (55%) don’t know where their money is invested. Nearly seven in ten hold multiple pension pots, while some don’t even know how many. Many are unaware that the government tops up contributions with tax relief.
Encouragingly, a quarter of people have increased their contributions, showing that when the benefits are clear, people take action. These findings highlight why it’s worth tuning in now, especially if your pension is becoming one of your largest assets.
Don’t rely on the State Pension alone
The State Pension can provide a useful foundation but relying on it alone risks leaving a significant gap. Even if you qualify for the full amount, it equates to just under £12,000 a year – enough to cover some basics, but far from everything.
Not everyone qualifies automatically either. To receive the full amount, you’ll need 35 years of National Insurance contributions or credits. If you’ve had career breaks or lived abroad, it’s worth checking your forecast at gov.uk/check-state-pension.
What does a good retirement look like?
The Pensions and Lifetime Savings Association (PLSA) has outlined three Retirement Living Standards to help visualise different lifestyles:
- Minimum – around £13,400 a year, covering essentials with limited extras
- Moderate – about £31,700, offering more flexibility and financial security
- Comfortable – roughly £43,900, allowing greater choice, such as longer holidays and regular leisure activities.
These figures don’t include housing costs. If you expect to continue supporting children, funding education, or maintaining a certain lifestyle, your financial needs are likely to be higher.
Making your pension work harder
Your pensions and investments may represent significant parts of your wealth, making it more important than ever to review how they are performing and whether they’re aligned with your long-term plans, which may shift over time.
For some, it may mean increasing contributions while income levels remain strong. For others, it could be about reviewing old workplace pensions and considering whether consolidating them would simplify management and reduce charges. Checking where and how your pension is invested, and whether that reflects your goals and attitude to risk, can also be a powerful step.
If you’ve built up other assets, such as property or business interests, reviewing how these fit alongside your pension strategy can give you a clearer view of the income and flexibility you’ll have in retirement. And don’t forget the government’s role as every contribution benefits from tax relief, instantly boosting your savings.
Planning ahead with confidence
Retirement may still feel a little way off, but the decisions you make now shape the lifestyle you can enjoy later. Reviewing your pensions, projecting future income and ensuring they align with your wider financial plan creates clarity and peace of mind.
This isn’t about becoming a pensions expert. It’s about making informed choices and knowing when to seek support. Your financial planner can help you understand the income your pension might provide, highlight any gaps and suggest ways to make your wealth work harder – whether that’s for your own retirement or for the legacy you want to leave.
Your future, your choice
Pensions may not be the most exciting item on your to-do list, but they are one of the most important. By tuning in now, you can move forward with confidence, knowing you’ve taken important steps to protect your lifestyle, support your loved ones and plan the retirement you deserve.
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.