Three Things You Should Know About Your Pension Savings

There’s a quiet shift happening when it comes to pensions—and it’s a positive one

More people are starting to pay attention to their retirement savings, and the data shows it. According to Boring Money’s Pension Report 2024 – The Consumer Focus, 67% of people have already checked their annual pension statement this year, up from 59% in 2022. That’s a promising sign of growing awareness—and with the year still underway, that figure may climb even higher.

The report also found that:

• 60% have logged into an online pension account this year, compared to 52% in 2022.
• 6% have opened a new private pension, up from 4%.
• 8% have consolidated pension pots, compared to 5% two years ago.

These small but meaningful increases suggest a growing number of people are waking up to the fact that pensions aren’t just background admin—they’re the foundation of future financial independence. Whether you’re nearing retirement or just starting to think about it, taking an interest now could make a real difference to your lifestyle later on.

Here are three essential things to understand about your pension savings, and how they can help you prepare for life beyond work.

1. Do You Know Where Your Pension Savings Are?

It might sound obvious, but many people don’t know exactly where their pensions are held—especially if they’ve changed jobs a few times. Your savings might be spread across several pots, and it’s easy to lose track.

In the UK, most pensions fall into two types: defined contribution (DC) or defined benefit (DB).

If you’re in a defined contribution scheme, the value of your pension depends on how much you (and usually your employer) pay in, plus how the investments perform. This is now the most common type of workplace pension, especially in the private sector.

A defined benefit scheme, often called a final salary pension, works differently. It promises a fixed income based on your salary and the number of years you worked for an employer. These schemes are increasingly rare outside the public sector, but if you have one, it offers a valuable, guaranteed income for life.

If you’ve worked in multiple roles, it’s worth checking where your pension pots are and how much is in each. The government’s free Pension Tracing Service can help you track down old pensions you might have forgotten about. The sooner you gather everything together, the easier it becomes to plan for retirement with a clear view of what you have.

2. What Income Could You Expect in Retirement?

Once you know where your pensions are, the next step is understanding what sort of income they could provide.

With a defined contribution pension, the final value depends on how much has been paid in, how long it’s had to grow, and the performance of the investments. From age 55 (rising to 57 in 2028), you’ll have the option to take a tax-free lump sum, buy an annuity, move your pension into income drawdown, or take a combination of these. Each option has pros and cons, so knowing the size of your pot helps you make informed choices.

If you have a defined benefit pension, you’ll receive a regular income for life, based on your past earnings and time in the scheme. This gives you certainty and can serve as a reliable base to build on—especially if you’re also drawing from a DC pension or other savings.

The State Pension also plays an important part. If you have at least 10 qualifying years of National Insurance contributions, you’ll receive some State Pension, and with 35 full years, you’ll receive the full amount—currently £221.20 per week (2024–25). It’s unlikely to be enough on its own, but it adds to your overall retirement income and provides a layer of stability.

By reviewing your expected income from these different sources, you can work out whether you’re on track to meet your retirement goals—or whether you might need to make a few changes along the way.

3. How Is Your Pension Invested?

If you’re in a defined contribution scheme, your pension fund is invested on your behalf. The choices made—either by you or your provider—can have a major impact on the eventual size of your pension pot.

Pension funds are usually spread across a mix of investments, such as shares, bonds, cash, property, and other assets. The idea is to grow your money over time, although this comes with risks as well as rewards. You may be in a ‘default’ or lifestyle fund, which gradually reduces risk as you get closer to retirement—or you might have selected your own funds.

It’s a good idea to check how your money is invested, and whether the approach still suits your goals and risk comfort. Here’s how your investment needs might change over time:

• If you’re early or mid-career, you might be comfortable with a higher-risk, growth-focused investment strategy. That’s because you’ve got time to ride out any market fluctuations before you need to access the money.
• As you approach retirement, you may prefer to shift into more cautious investments that are less exposed to market swings. This helps protect the value of your pension pot at the time you’re likely to start drawing from it.

This gradual shift is known as lifestyling, and many pension providers automatically apply it unless you opt out. Still, it’s wise to check how your funds are managed and whether they still align with your retirement plans. If you’re unsure, your pension provider can usually explain your options, and many offer online tools to help you understand where your money is invested.

Taking a More Active Role

Keeping an eye on your pension might not feel urgent, but even small actions can make a big difference over time.

Start by reviewing your annual pension statement. It provides a snapshot of how your fund is doing, how much you’ve paid in, and what you might expect in retirement. If you’ve never read one before, now’s the time to take a look.

Next, think about how your pensions fit into the bigger picture. If you’ve had several jobs, or your circumstances have changed, a quick check-in could reveal pots you’ve forgotten about—or a need to consolidate.

You might also want to reassess how much you’re contributing. If you’ve had a pay rise or you’re trying to catch up before retirement, increasing your contributions—just by a little—could give your fund a meaningful boost.

In the near future, pension dashboards are expected to launch, bringing together all your pensions in one place online. This should make it even easier to understand where you stand and what to do next.

Final Thoughts

The signs are encouraging—more people are checking their statements, logging in to their accounts, and asking the right questions. And with retirement often lasting two or three decades, getting your pension into shape is one of the most valuable things you can do.

You don’t need to overhaul everything at once. But by knowing where your pensions are, understanding what income they might provide, and keeping an eye on how your money is invested, you’re taking meaningful steps toward a more secure and confident retirement.

If you haven’t looked at your pension in a while, now’s the perfect time to get started. The more you know now, the more freedom and control you’ll have later on.