Most people have several jobs over their lifetime, and in every job you have, your employer will usually provide you with a pension.

This means that many of us have started to stack up a number of pension pots (A) across different employers and pension providers.

It can be hard to keep track of how much you’ve saved across a number of pensions, so many people look at combining them together into one, easy to manage, pot.(B)

You can combine existing pensions into your current workplace pension scheme or a separate personal pension, whatever works best for you. The benefit is that it can make it easier to keep track of and manage your pension savings. 

If you do want to combine your pensions you can find out more information on our website. (1) However, you should be aware that some older pensions may have guarantees or special features you’ll lose if you transfer them. You might be charged for moving your pension too. 

If you’re unsure about any of this then speak to a financial adviser, your pension provider or visit the MoneyHelper Website. (2) If you don’t have a financial adviser you can find one on the unbiased website. (3) It’s worth remembering they’ll normally charge for any advice given.

The first step to retirement planning is finding out how much you currently have in your pension. This means looking at any pensions you may have had over the years, potentially tracing any lost pensions, and checking how much is in them. 

To help you know how much your pension is currently worth your pension provider should send you an annual benefit statement every year telling you the current value of your pension, and how much you might get when you get to retirement. If you haven’t received this or want a more up-to-date figure you can contact your pension provider directly. You can usually do this over the phone but with many pension providers you can also check your pension value online, or through an app.  

If you don’t think you’ve received your annual benefit statement it’s worthwhile checking your pension provider has your most up-to-date contact details so they can keep in touch. 

When checking the value of your pensions it can also be a good time to track down any pensions you’ve lost sight of. Think of any pensions you may have paid into through old employers for example. If you can’t remember your old pension provider or have contact details for your employer the Government has a free service that can help you trace any lost pensions. It’s really simple and you can do it all through their website (1).

Once you’ve added up the value of all your pension pots it’s worthwhile checking if you’re on track for the retirement you want. Our calculator can help you add up how much you’ve got, with what you’re currently saving to give you a projection of when you could retire. You can try it out now on our website (2).

Although it’s important to remember that as with any investment the value of your pension can rise and fall over time.

When thinking about how much you’ll have in retirement you should also factor in any State Pension you may receive. The State Pension you may get depends on how long you’ve been paying your National Insurance contributions so it can differ for everyone, but the full State Pension is just over £10,600  per year.   You’ll usually be in your late 60’s by the time you receive it, but you can find out exactly when you’ll get your State Pension on the Government website, as well as a forecast on how much you may get (3). 

For more information or to get an idea of how much you may need in retirement our (4) website can help. The Government also offer free guidance through (5) MoneyHelper or if you’re in your 50’s then (6) Pension Wise can help you make the most of your pension options.

Hi, I’m Robert and I’m a Retirement Expert at Scottish Widows. 

The earlier you start a pension plan, the better. But if you don’t have one, don’t panic. It’s never too late start  saving for your retirement. (A)

As you get nearer to your chosen retirement date it’s important to start thinking in more detail about what your plans are and what you’ll need to retire on. You can usually access the benefits from your private or workplace pension when you turn 55, but it’s worth remembering you’ll likely be in your late 60’s before you receive any State Pension. (B) If you find you’re on track for the retirement you’re working towards then great, but if not you may want to look at boosting your pension. 

We recommend you aim to save at least 12% of your total pay into your pension (1). This is made up from the payments by both you and your employer along with any tax relief from the Government. 

There are several ways you could pay in a little extra. You could make a one-off payment into your pension or increase how much you pay in regularly. Any extra you pay in will normally benefit from tax relief. If you’re employed, we recommend you speak to your employer first as there might be a benefit if you do this through them.  

A small increase now could make a real difference to your future. 

We have some really useful pension calculators (2) that can give you an idea of how much you should think about saving each month to reach your retirement goals, and how a small increase now can really add up in the future.  For more information visit our website. (3)

One of the key benefits of paying into a pension is that Pensions are a really tax efficient way of saving for your long term future. This is because you usually get tax relief on your own pension contributions, which reduces their cost.  Tax relief means you get back some of the tax you paid on your earnings when you pay into your pension. That’s why they can be such an effective way to save for your retirement. 

Tax benefits can be applied in a number of different ways. You can check with your pension provider how this works for the type of pension you are in 

(1)One way is through what is known as tax relief at source. This will apply if either pay your own contributions from your bank account or your employer deducts them from your after-income-tax earnings. This means, if you pay an £80 contribution, the Government tops this up to £100, so you get 20% basic rate tax relief.

With this type of pension, you usually get 20% tax relief even if you don’t pay tax or pay the Scottish 19% starter rate. 

If you pay any income tax at a higher rate than 20%, you need to claim the rest of your tax relief, usually by completing a self-assessment tax return. 

(2) With some other types of workplace pensions your employer deducts your pension contributions from your earnings before working out your income tax. This is known as net pay tax relief. 

This reduces the cost of contributing £100 to £80 if you pay tax at the 20% basic rate tax, or to £60 if you pay at the 40% higher rate tax – and so on. 

At the moment low earners in Scotland might only get 19% tax relief rather than 20%. And it’s worth remembering you don’t get any tax relief on contributions paid out of income within the personal allowance, which is currently £12,570.

If this affects you, the Government has announced that you’ll be able to claim a top up equivalent to the tax relief you miss out on from 2025/26, but this won’t cover tax years before 2024/25. 

(3) Finally, there’s Salary exchange – In this scenario you agree to reduce your earnings in exchange for your employer increasing the pension contributions it makes for you. As the result you don’t pay tax or national insurance on the amount you have exchanged. If you pay any extra contributions outside of the salary exchange, you would get tax relief on these amounts in line with the type of pension scheme you’re in.

For more information visit the MoneyHelper website.

You now have a number of options available to you when it comes to taking your pension benefits. You can take flexible drawdown, (1) a guaranteed income for life, known as an annuity  or you can take it all in cash. Or you can leave it for now by deferring your pension. (A) You can even do a  mixture of all of these. Our website has loads more information on what these options mean. (2)  

You can usually take your pension benefits from the age of 55 . (B) Your pension provider should get in touch with you four to six months before you’re due to take your pension so they can explain the process. But if they don’t get in touch, do contact them and they can tell you your options.

If you’re considering taking your pension benefits, then the best thing to do is to speak to your  pension provider, or visit the MoneyHelper website. (3)  If you’re over 50, you can access the Government’s Pension Wise service on the MoneyHelper website where you can book a free appointment to get some guidance.

You’ll usually also receive a State Pension, but you likely won’t be able to claim this until you are in your late 60s. (C) -  So if you are planning to retire before then, this is something you’ll need to take into account. You can find out when you can receive the State Pension on the Government website. 

With State Pension, remember you won’t get your pension automatically, you’ll need to claim for it. (4)  You usually get a letter around about four months before you reach State Pension age telling you what you should do. If you don’t get a letter by three months before you’re set to retire, phone the claim line (5) or visit the Government website. (6)

[We know financially this is a difficult time for many people, which can put pressure on household finances. ]

[We know keeping on top of your finances can be tough, particularly with the current rising cost of living affecting many of us and putting pressure on household finances.]

If you’re still able to afford to pay into your pension, but are concerned about how the markets are behaving it’s worth remembering the benefits of investing in a pension.

When you save into a pension, you benefit from tax relief, meaning that you get your tax back from the Government as a reward for saving for your future. 

To try and ensure people start saving for their retirement the Government introduced auto-enrolment in 2012. Your employer enrols you in your workplace pension scheme and both you and your employer pay in a percentage of your salary.  The minimum contribution is 8% of your qualifying earnings, this means your employer pays in 3%, and you normally pay in 4% and get 1% tax relief from the Government.

If you are in a workplace pension scheme and choose to come out of the scheme, your employer will have to re-enrol you into the scheme. – the exact date you will be re-enrolled will be anything from 1 year to 4 years after you come out of the scheme.

 If you opt-out of your workplace pension you’d miss out on these extra payments on top of your own payments into your pension. You should check with your employer if you’re unsure of their contributions or if you want to make any changes to your pension payments.

One of the benefits of regularly investing smaller amounts is that this helps average out the costs over time. If you’re investing long term, such as in a pension, buying units when they’re cheaper can actually work out to be good value in the long run.

Now if you do want to stop paying into a pension you can do that at any time but you should consider the long term implications to your pension savings. There are other options available such as lowering your payments or taking a payment holiday for up to 6 months.

If you’re considering making any changes to your pension, it is important to consider them carefully, bearing in mind your long term objectives. A pension is designed to support you when you retire and any decision you make now can have considerable impact years down the line. We recommend you seek financial guidance or advice before making changes to your pension. 

For bespoke advice tailored to your finances, you can speak to a financial advisor. If you don’t have a financial adviser you can find one on the unbiased website. (1)  They’ll normally charge for any advice given.

For free and impartial guidance you can trust, MoneyHelper (2) can help. They’re a Government backed organisation which has a number of helpful resources on their website including budgeting tools and a pension calculator that can help you see how much you’ll need in retirement.