Many people either neglect their pensions or review them too frequently in response to market movements. So, how often should you check your pension? As a type of long-term investment, pensions benefit more from periodic, structured reviews than from constant monitoring. We explain what you should be looking at and why having a clear framework matters for your pension planning.
Check your State Pension
Let’s start with the State Pension. If you have made 35 qualifying years of contributions, then you should be entitled to the full State Pension. However, in some cases, many people find out all too late that they have missing years. It’s worth checking your State Pension every year to make sure you have made the right number of contributions.
Up until April 2025, HMRC allowed people to pay for any missing years of contributions back to 2006. However, you are now only allowed to top up any gaps for the last 6 years. If you need to check your State Pension forecast, go to www.gov.uk/check-state-pension
Personal or private pension schemes
Surviving on State Pension income alone can be challenging. Therefore, most people pay into at least one additional pension scheme. This is why the government introduced auto-enrolment schemes, where employers contribute to employees’ workplace pensions. If you aren’t paying into a workplace pension, then it’s recommended to make contributions into a personal or private pension. Check your pension scheme annually.
There are many types of pension plans that offer varying levels of investment risk and return. Depending on your strategy, you could consider a Small Self-Administered Scheme (SSAS) or a Self-Invested Personal Pension (SIPP). As a guide, see our blog, What’s the difference between a SIPP and a workplace pension?
Multiple pension schemes
A common scenario is when people find they have a series of small pensions. This can happen when people change jobs, and they have paid into different workplace schemes.
It’s a good idea to get an understanding of all the pensions you hold, so you can consider how to make the most of your savings. In some instances, it might prove beneficial to consolidate multiple pensions into a single scheme. However, never make changes to a pension without seeking advice – always speak to a professional financial planner.
Don’t leave it too late to check old pensions. It’s not uncommon for people to forget about an old, small pension, which then only becomes apparent after someone passes away. For more guidance on this scenario, see our blog, What happens to small pensions when you die?
Guide to pension planning
An annual review of a pension is recommended, but ensure it is structured. Instead of just checking the income forecast, your pension should be treated in the same way as any other long-term investment.
Below are a few things to check when carrying out a pension review:
- Are you making enough contributions? Make sure you are on track to achieve your retirement goals given your time horizon. If you have a workplace pension, then check your employer is also paying the right amount.
- How is your pension pot growing? Assess whether your pension savings are growing in line with your expectations. From a tax perspective, check that you are within the relevant limits and the annual allowance.
- How is your pension performing? Pensions are a form of investment, so it’s important to review how the pension has performed over longer periods, e.g., 3- and 5-year periods.
- What are the fees and charges? Check that any costs associated with managing your pension plan are not eating into your returns.
- Does the scheme match your age, goals and attitude to risk? Make sure your pension is aligned with your current investing strategy. As you get older, your priorities will change, and so could your strategy.
For more information on pensions, see our Retirement Planning page.
Pension Advice, West Bridgford
A periodic review of your pensions will help you plan better for the future. By taking a structured approach to your pension planning, you can stay on track with your financial goals. Check all of your pensions to make sure you are making enough contributions to fund your future retirement.
At Balance: Wealth Planning, our team can review your pensions and advise you on how to make the most of your savings. We will help you plan ahead for any impact your pensions may have on inheritance tax planning. Depending on the scheme, our financial planning team will look at whether it’s beneficial to consolidate your pensions or keep them separate. Our aim is to ensure you achieve an enjoyable, worry-free retirement.
Get in touch for a pension review with our financial planners.
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