That lack of clarity extends to how pensions are invested; 55% admit they don’t know and an overwhelming majority (81%) have never thought to change their investment strategy. A quarter say it’s simply because they don’t know how or didn’t realise they could. Many people manage multiple pension pots – nearly 70% have between one and five – yet 20% aren’t sure how many they actually own. Among those who do know, 35% don’t know how to access their pension. Only 15% have consolidated their pension pots, though 46% express interest but lack clarity on how to do it.
Mind the State Pension gap
Understanding your private pension is one thing – getting clarity on your State Pension is another hurdle. Half of UK adults don’t know how much they’ll receive and 32% don’t know at what age they’ll qualify2. Over half (51%) are unaware of the full New State Pension amount (currently £11,973 per year), and 52% don’t know how to find their entitlement. One in three don’t know that National Insurance contributions influence what they’ll receive.
With so many uncertainties, it’s hard to plan confidently. As your pension is a cornerstone of your retirement strategy, filling these knowledge gaps isn’t optional – it’s essential.
Feel empowered
The first step to taking control of your pension goals is understanding how much you’ll need in retirement. As a general guide, the Pension and Lifetime Savings Association (PLSA) estimates that a single person would need £13,400 a year for a ‘minimum’ lifestyle standard if they were retiring today (£21,600 for a couple). These figures apply to people living outside London and exclude housing costs.
For a ‘moderate’ lifestyle, these amounts increase to £31,700 for a single person and £43,900 for a couple. Having benchmarks to aim for can help you set realistic targets, track your progress and decide whether adjustments to contributions or investments might be needed.
Understanding the gap between where you are and where you want to be is the foundation of financial confidence. It’s about feeling empowered to make informed choices, not overwhelmed by uncertainty.
What you can do now
1. Get clear on the basics
Check your pension type(s), understand how much you’re contributing (including employer match), and see how your funds are invested.
2. Consolidate thoughtfully
If you hold multiple pension pots, consolidation might simplify oversight and reduce fees, but it needs careful evaluation to ensure no loss of benefits.
3. Review your investment strategy
If 81% haven’t changed their investment choices, there’s likely room for improvement. Your financial planner will ensure that your allocation fits your time horizon, risk profile and retirement goals.
4. Factor in the State Pension
Check your State Pension forecast Check your State Pension forecast – GOV.UK and plan how it fits with your private pensions and other investments.
5. Guard against behavioural traps
When decisions feel urgent or tempting, pause. Consider the emotional drivers and seek perspective rather than reacting.
6. Seek advice early
Good financial advice helps connect all the dots including tax planning, investment structure, consolidation, legacy and more. Working with your financial planner can help you move forward confidently rather than speculatively.
Sooner rather than later
Although retirement may seem a long way off, the time to act is now. Understanding and planning your pension isn’t just about wealth – it’s about peace of mind, clarity and a stronger financial future.
1Aviva, 2025, 2Standard Life, 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.