Here’s a few tips to make sure you have your pension organised (Image: Getty)
One in seven UK adults has never checked their pension. This is a startling statistic, and it gets worse. Research by Standard Life showed those nearing retirement – the over-55s – were least likely to have engaged with their pension. With most people enrolled in workplace pensions, where employers typically organise the scheme, checking the account may not have crossed your mind. But you should – or it could cost you thousands of pounds in retirement. This isn’t a comprehensive list, but here are a few easy checks to ensure your savings are in the best place they can be.
Reviewing your annual pension statements is a good starting point. You should receive these in the post, and you can access them online if you’ve set up an account. If you don’t receive a statement, request one from your provider. They show your investment forecast, providing a good indication of whether you’re saving enough or should be putting more away.
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Secondly, check your pension account fees. Fees are charged by pension providers to manage and invest your savings. They are usually taken as a percentage of your total pot or as a fixed monthly or annual fee.
This check has become more pressing as a few rounds of new research show that opting for providers with fees even 0.5% lower could significantly increase your retirement pot in the long run.
To put this into perspective, according to Vanguard’s calculations, someone earning the average UK salary of £37,500 and contributing £250 per month into their pension from age 25 to 66 could accumulate £465,000 by retirement (assuming a 6% annual return and a 0.5% account fee). However, a 1% fee would shrink the pot to £406,000 – a staggering £59,000 difference.
Thirdly, do you have sight of all of your pension pots? Or could you have a few thousand pounds sitting in a long-lost fund? Research by the savings finder Gretel suggests nearly £65billion is currently tied up in unclaimed pensions. I spoke to a 55-year-old from Staffordshire last week, who told me she found £17,000 in a lost pot after inputting her details into Gretel.co.uk. A welcome windfall!
Finally, have you completed an Expression of Wish form? This allows you to nominate who will inherit your pension. Research from Hargreaves Lansdown has shown that as many as 40% of people aged 60 and above have not yet done so.
By choosing your beneficiary, you can reduce a potential inheritance tax (IHT) liability later down the line. For example, the most tax-efficient option is to name your spouse or civil partner, as such transfers are exempt from IHT.
Most pension providers allow you to complete an Expression of Wish form online. If not, call them and explain what you need.
Some of these checks can take minutes, but they could boost your income by thousands – don’t wait until it’s too late.
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DEAL OF THE WEEK
Fancy 25 hours of free electricity? Comparison site Uswitch is offering this deal to households with smart meters, regardless of energy provider, to soften the blow of higher energy bills in November.
Download the free Uswitch app, connect your smart meter and sign up to the scheme before October 31, 2025. You’ll then be notified each week in November to pick a five-hour free electricity time slot for the upcoming weekend.
After each five-hour slot ends, Uswitch will calculate how much electricity you’ve used and will add the money earned to your app account. After the final free-electricity period, you can withdraw the earnings.
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Are you 66 and over with a health condition or disability that means you need help with day-to-day tasks? Regardless of income and savings, you could be eligible for the Government’s Attendance Allowance benefit.
It’s worth up to £441.60 per month at its highest rate, and it’s been previously estimated that as many as one million eligible pensioners aren’t claiming.
Whatever the reason, don’t quit before you’ve even started. Reach out to charities, such as Age UK or Citizens Advice, for assistance with the form if needed. Otherwise, you can claim the benefit online via GOV.UK. Simply type ‘Attendance Allowance’ into the search bar.
Common conditions people claim for include anything from sight or hearing impairments, mobility issues such as arthritis, to mental health issues like dementia. It’s certainly worth checking to see if you can apply.
