Ways to boost your pension

You’re likely to miss out on money you’re entitled to if:

• you have a pension you’ve lost track of

• your provider has old contact details for you.

 For step-by-step help, see our guide How to find old or lost pensions. 

You could be one of millions with a lost pension in the UK.

When you pay into a pension, you usually get a top-up payment added from the government – called tax relief.

This means increasing your pension contributions might not cost you as much as you think.

For example, a £10 contribution into your pension will normally cost you:

• £8 if you pay basic-rate tax

• £6 if you pay higher-rate tax. 

You can see the Income Tax bandsOpens in a new window on GOV.UK.

You usually qualify for tax relief on all your pension contributions as long as you don’t pay in more than:

• the amount you earn in a tax year (6 April to 5 April) and

• your annual allowance – this is £60,000 for most people.  

Our Pension calculator can show you how much your pension is likely to pay:

• based on your current contributions and
• if you paid in more.

Even a small increase can boost your pension – especially if you can make them for many years. For help seeing how much extra you could afford to save, you can use our Budget planner.

Just remember that any money you pay into your pension will usually be locked away until you’re age 55 (57 from April 2028). So it’s a good idea to also build up some savings you can access.  

If you have an employer, check if they offer contribution matching. This means they'll also pay more into your pension if you do, up to a certain limit – like 10% of your pay. 

This can add hundreds or thousands of pounds to your pension each year. Our Workplace pension contribution calculator can work out how much you could get. 

If you have a defined contribution pension, you can usually choose how much you’d like to pay in by contacting your:

• employer – if they set up the scheme
• pension provider – if you set up the scheme.  

If you have a defined benefit pension, you’ll often have a set contribution amount based on your salary.

To pay in more than this, you'll need to check if your scheme lets you build up extra benefits.

If it doesn't, you'll need to  start your own defined contribution pension for any additional savings. 

The amount of State Pension you’ll get depends on how many years of National Insurance contributions or credits you have when you reach your State Pension ageOpens in a new window

You usually earn these automatically if you’re employed or receiving certain benefits. You normally need at least:

• 10 qualifying years to get any money and
• 35 years to get the full amount.

You can check your State Pension forecastOpens in a new window on GOV.UK.

If you won’t reach your State Pension ageOpens in a new window within 30 days, you can also:

• call the Future Pension Centre helplineOpens in a new window

• apply by postOpens in a new window

If your forecast shows you might not qualify for the full amount, there are ways to increase your State Pension – including claiming free credits or paying to fill gaps in your record.

This can mean you pay hundreds now to get thousands back in extra income later – depending on how long you live for.

For step-by-step help, see our guide Increase your State Pension with voluntary National Insurance contributions.

You might not be getting all the tax relief you’re entitled to if:

• you pay Income Tax at a higher rate than 20%Opens in a new window
• your pension provider claims tax relief at a fixed 20% for everyone, called relief at source.

If you set up your own pension, relief at source will be used. 

If your employer set up your pension, ask them which method they use to claim tax relief. If they use net pay, you’ll automatically get all the tax relief you’re entitled to.

To claim extra tax relief, you can:

• claim on GOV.UK Opens in a new window

• contact HMRCOpens in a new window  

• complete a Self Assessment tax returnOpens in a new window

You’ll need to claim every tax year you’re eligible and can usually backdate a claim for the last three tax years. 

You’ll usually either:

• get any extra tax relief as a refund of tax you’ve already paid or 

• if you owe HMRC tax, your tax bill will be reduced.  

Your tax code might also be changed so less tax is taken off your future income.

For more information, see our guide How tax relief boosts your pension contributions.

If you have a defined contribution pension, your provider will usually charge fees to cover their costs of managing and investing your money.

If you have a defined benefit pension, you won’t pay any charges anyway, so you cannot transfer to a cheaper scheme.

You can find out your pension type using our tool or ask your pension provider.

You can usually find your pension provider’s charges by:

• logging in to your provider’s online account 

• checking pension statements

• contacting your provider.

You’ll typically pay an annual management charge and fees to change how your pension is invested.

Find out more in Pension scheme fees and charges explained.

Charges vary between pension providers, so it’s worth comparing your provider’s charges to others on the market.  For help comparing schemes, see our guide How to start your own pension. 

For example, if your pension is worth £30,000 and your provider has a 0.75% annual management fee, you’d pay £225 a year. If you switched to a provider charging: 

• 0.5%, you’d pay £150 – saving £75 a year 

• 0.3%, you’d pay £90 – saving £135 a year. 

Workplace pensions offered by employers are usually cheaper than personal pensions you can set up yourself.

But pension charges have been reducing over time, so older schemes might have higher charges than new schemes.

Pension scheme charges are important to review as they can reduce how much you’ll have for retirement – even small amounts over time can make a big difference. 

But there’s always a risk you might lose out on much more valuable benefits by switching provider. For example, your current provider might offer: 

• a guaranteed retirement income at a higher rate than you could get elsewhere 

• a protected minimum pension age – you might have to wait longer to access your pension if you transferred to a new provider.    

For more information, see our guide Should I transfer or combine my pensions? 

If you have a defined contribution pension, how much it will pay you depends on:

• how much is paid in, including any money from your employer

• how much is taken off in fees and charges

• how you choose to take the money 

• how well your invested money performs.

Your pension provider will usually manage and choose your investments for you, often putting your money into your scheme’s ‘default’ fund. This normally means less risk is taken with your money the closer you get to your expected retirement age.

But you can usually tell your provider which funds to invest in if the default does not work for you or you’d rather choose yourself. 

For example, staying in the default fund might mean you miss out on investment growth if you’d like your pension to stay invested after your scheme’s retirement age.   

For more information, see our guide How to choose your own pension investment options.

One way to make your pension last longer is to start taking it later than the age your scheme expects you to retire, called the normal pension age (NPA). This can also mean you pay less Income Tax if you’re still earning at your NPA.

If you delay taking a defined contribution pension, this can also mean:

• your pension has longer to stay invested and potentially grow

• you can often convert your pension into a higher guaranteed income as annuity rates typically increase the older you are – this is because it likely won’t pay out for as long.  

If you delay taking a defined benefit pension, you’ll usually get a higher guaranteed income than your scheme originally promised – as it will likely pay out over a shorter period than originally planned for. 

For more information, see our guide Retiring later or delaying taking your pension pot.

You can start claiming your State Pension when you reach your State Pension ageOpens in a new window

But if you wait, your weekly State Pension amount will increase for each week you don’t claim – as long as you delay by at least:

• nine weeks or

• five weeks if your reached State Pension age before 6 April 2016.

You can then claim your State Pension when you’re ready. Just remember, it will be paid over a shorter period so you might not gain more overall if you have a short life expectancy. 

Find out more in our guide Increase your State Pension by delaying your claim. 

If you have a defined contribution pension, we offer free Pension Wise appointments to help you understand the options for taking your money.

You can have an appointment if you have a UK-based defined contribution pension and are: 

• 50 or over  

• under 50 and: 
  • retiring early due to poor health or 
  • have inherited a pension.

You can have an online appointment at any time or book a date and time with one of our pension specialists.

If you have any questions about your pension, our pension specialists can help – it doesn’t matter how old you are.