What the research tells us
Pensions are central to financial well-being, 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 are motivated to act. The findings highlight why it’s worth tuning in now, while you still have time to make a meaningful difference.
Don’t rely on the State Pension alone
The State Pension can provide a helpful foundation, but relying on it alone could leave 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 taken time out of work, had career gaps, 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 people visualise their needs. For a single person, these are:
- 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, affording greater choice, such as longer holidays and leisure activities.
These figures exclude housing costs, so if you expect to rent or still have a mortgage later in life, your needs could be higher.
Making your pension work harder
You’re at a stage in life that is often financially demanding, but it’s also a time when your income may be higher than before. Taking proactive steps now helps ensure you’re making the most of these years.
For some, that means increasing contributions, even by a small amount. For others, it’s about reviewing old workplace pensions and considering whether consolidating them would reduce charges and give a clearer picture. Checking how your pension is invested and whether it matches your appetite for risk can also make a real difference.
Don’t forget the government’s role – every contribution you make benefits from tax relief, boosting your savings straight away.
Planning ahead with confidence
Retirement may feel like a distant milestone, but the choices you make now shape the options you’ll have later. By reviewing your pensions, considering future income needs and making adjustments today, you’re creating flexibility, security and peace of mind.
You don’t need to know everything about pensions to make good decisions. What matters is being proactive, asking questions and seeking expert support when you need it. Your financial planner can help you understand what your pension might provide, highlight any gaps and build a clear plan for reaching the lifestyle you want.
Your future, your choice
Pensions may not be the most exciting item on your to-do list, but they are one of the most powerful. By tuning in today, you can move forward with greater confidence, knowing you’ve taken important steps toward 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.