How to Grow Your Pension Pot

As you get closer to retirement, it’s natural to start thinking more seriously about your pension savings. Whether you’re in your early fifties or just a few years from finishing work, there’s still plenty you can do to boost your pension pot and improve your financial outlook.

Even small changes now could make a big difference later—giving you more freedom, more comfort, and more peace of mind in retirement. Let’s look at the most effective ways to make your money work harder in the years leading up to retirement.

Making the Most of What You Already Have

If you’ve got a pension pot in place—through a workplace scheme, a personal pension, or even a mix of both—there are practical steps you can take to increase its value before you retire.

Contribute More (Even a Little Helps)

Regular contributions are the backbone of any pension. If you’re already contributing through auto-enrolment, that’s a good start—but don’t feel limited by the minimum. You can choose to pay in more if your budget allows, and any extra contributions will benefit from tax relief too.

Even occasional lump sums can give your pot a healthy boost. If you receive a windfall—like an inheritance, a bonus, or a redundancy payment—consider putting some of it into your pension. The earlier you do, the longer it has to grow.

If you’re self-employed, setting up your own pension is essential. A personal pension or SIPP (self-invested personal pension) gives you flexibility, and you’ll still benefit from the same tax relief as employed workers.

Don’t Miss Out on Employer Contributions

If you’re employed, your workplace pension probably includes employer contributions—and they can make a big difference over time. Some employers will match your payments up to a certain level, effectively doubling what goes into your pot.

Make sure you understand your employer’s policy, and try to contribute enough to unlock the full benefit. It’s one of the few times in life where you get something for nothing—so it’s worth making the most of it.

Growing With Your Income

As your earnings increase, so should your contributions. But it’s easy to fall into the habit of saving the same amount each month, even as your income grows.

One simple fix is to switch from a fixed monthly contribution to a percentage of your earnings. That way, your pension savings automatically increase whenever your pay does. It helps to stay ahead of inflation too, protecting the real value of your future retirement income.

Making Tax Relief Work in Your Favour

Tax relief is one of the biggest advantages of saving into a pension. For every £80 you pay in, the government adds £20—bringing it up to £100. If you’re a higher-rate or additional-rate taxpayer, you can claim even more through your tax return.

This government top-up effectively gives you an instant return on your money, and it’s one of the reasons pensions can be much more rewarding than saving into a standard savings account or ISA, particularly in the long term.

Salary Sacrifice: A Smart Alternative

Some employers offer salary sacrifice schemes, where you agree to reduce your salary and have the difference paid into your pension. Because this money goes in before tax, you pay less in income tax and National Insurance—while boosting your pension at the same time.

It’s worth speaking to your HR department or a financial adviser to make sure this approach suits your personal circumstances, but for many people it’s an efficient way to save more without feeling the pinch.

Combining Old Pension Pots

If you’ve had a few different jobs over the years, it’s quite possible you’ve built up several small pension pots along the way. Combining them into a single pension plan can make life simpler—it’s easier to keep track of your savings, review your investments, and manage your charges.

In some cases, consolidation may even lower the fees you’re paying, leaving more money in your pot. But it’s not always the right move. Some older pensions come with valuable benefits or guarantees that you’d lose if you transferred them elsewhere. If you’re unsure, it’s a good idea to get independent guidance before making any decisions.

Other Useful Strategies

There are a few other things you can do to protect and potentially grow your pension pot as retirement draws near.

Keep an Eye on Your Investments

Your pension pot is likely invested in a mix of funds. Over time, your appetite for risk might change. As retirement approaches, you might want to review whether your investment choices still suit your plans and comfort level.

If you’re unsure about making changes, speak to a financial adviser or use the government-backed MoneyHelper service for impartial guidance.

Try Not to Dip In Early

It can be tempting to take money out of your pension pot as soon as you’re allowed—from age 55 (rising to 57 from 2028). But doing so can dramatically reduce the income you’ll have later. You’ll also lose out on any potential growth from the money you’ve withdrawn—and could face tax charges if you take out too much in one go.

If you can, it’s best to let your pension continue growing for as long as possible. It’s your retirement income, not a rainy-day fund.

When the Time Comes, Shop Around

Once you’re ready to start drawing from your pension, take time to explore your options. If you’re considering buying an annuity, for example, don’t just accept the first offer from your pension provider.

You might get a significantly better deal—especially if you qualify for an enhanced annuity due to health conditions or lifestyle factors—by comparing rates from different providers. A bit of research now could mean thousands more in income over the course of your retirement.

Final Thoughts

Boosting your pension in your 50s or 60s might feel like playing catch-up, but the steps you take now can make a real difference. Whether it’s increasing your regular payments, taking advantage of tax relief, consolidating pots, or making smart decisions at retirement, it all adds up.

There’s no single right way to build a retirement fund—but there are plenty of good ones. The key is to stay proactive, ask questions, and seek advice when you need it. Your future self will thank you.