If it’s been some time since you reviewed your pension, going through these practical tasks could help you get more out of your retirement savings in 2025.

As retirement could be years away, it’s easy for your pension to slip off your list of priorities. In fact, a survey from The People’s Pension suggests that almost a fifth of savers have never reviewed how much is in their pension. What’s more, a third of people don’t know how much they’ve saved for their retirement.

It could mean some savers are missing out on opportunities to boost their pensions and enjoy greater financial freedom once they stop working.

So, here are five practical tasks you can complete to identify ways to boost your retirement savings.

1. Review your pension contributions

A useful first step is to understand exactly what’s going into your pension already. As well as your own contributions, you might also benefit from employer contributions and tax relief.

Your pension statement will include your contributions and a projection of the value of your pension at retirement. The forecast may indicate that you could benefit from increasing pension contributions.

Indeed, a report in This Is Money suggests that workers making the minimum auto-enrolment pension contributions could find their retirement income is just half of the amount they need for a “comfortable” retirement.

Even a small increase to your regular pension contributions could have a large effect on your retirement once you consider the compounding effect of investment returns over a long time frame. Reviewing your pension contributions when your financial circumstances change may offer a way to boost your pension without affecting your lifestyle now. For example, you might increase contributions when you receive a pay rise or if your mortgage repayments fall.

As well as increasing regular contributions, you might also choose to deposit a lump sum.

If you want to boost your pension, you may need to be aware of the Annual Allowance, which is the amount you can tax-efficiently add to your pension each tax year. In 2024/25, the Annual Allowance for most people is £60,000, although you can only claim tax relief on up to 100% of your annual earnings.

Importantly, unused Annual Allowance can be carried forward for up to three tax years. So, it may be worth reviewing contributions from previous tax years too.

Keep in mind that your Annual Allowance may be lower if:

• You’ve already taken a flexible income from your pension, as you may be affected by the Money Purchase Annual Allowance (MPAA), which is £10,000
• You’re a high earner, as the Annual Allowance will fall by £1 for every £2 your adjusted income exceeds £260,000. The tapering stops at £360,000, so everyone retains a minimum allowance of £10,000.

If you’re unsure if you’re affected by the Annual Allowance taper or the MPAA, please get in touch.

2. Read your employee handbook

Under auto-enrolment, your employer must contribute a minimum of 3% of your pensionable earnings to your pension if you’re an eligible employee. Many employers go beyond this so reviewing your employee handbook or contract could identify ways to boost your pension.

For instance, some employers may increase their contributions if you do the same. The extra money going into your pension could make a significant difference in the long run.

3. Ask your employer if salary sacrifice is an option

While reviewing your employer contributions, you might want to check if they could provide a salary sacrifice scheme.

Salary sacrifice means your salary would be reduced in return for higher pension contributions. As pension contributions are deducted before tax, it could be a way to reduce your Income Tax and National Insurance bill. In some cases, your take-home pay could be higher as a result.

So, a salary sacrifice scheme might boost your income now and in retirement.

4. Check you’re claiming your full tax relief entitlement

Usually, your pension provider will claim tax relief at the basic rate on your behalf. But you could be missing out if you’re a higher- or additional-rate taxpayer.

Indeed, an interactive investor poll found that a third of higher-rate taxpayers didn’t have plans to claim back extra pension tax relief through their tax return in the 2022/23 tax year. It could mean missing out on thousands of pounds over your working life.

If you contributed £5,000 to your pension before tax relief was added, as a higher-rate taxpayer your annual rebate would be £1,250. Over decades of saving, failing to claim your full tax relief entitlement adds up, especially when you consider potential investment returns.

You can usually claim extra tax relief as a higher- or additional-rate taxpayer by completing a self-assessment tax return.

5. Assess how your pension is invested

Usually, your pension savings will be invested with the aim of delivering long-term growth.

A pension scheme will normally offer several funds for you to choose from, which will have a range of risk profiles and criteria, such as a sustainability focus. If you haven’t selected a fund, your pension will typically be invested in the default fund, which might not be right for you.

While you’re reviewing pension investments, check the retirement date listed on your profile. Pension funds will often decrease investment risk as you near the milestone. So, if the date isn’t correct, you might find your pension isn’t invested in a way that aligns with your plans.

Contact us to talk about how to boost your pension

It’s never too soon to start retirement planning. Indeed, getting a head start could mean you have more opportunities to grow your pension and secure the retirement you want. Please get in touch to arrange a meeting with our team to talk about your retirement plan.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.