How do I check my pension, and how often should I review it?

Building up a pension is only one aspect of successful retirement planning.

You also need to review it regularly and ensure your money is in the right investment funds for long-term growth.

This is easier said than done, and it’s common to skip this step entirely. Research from Standard Life in 2023 revealed that 32% of Brits have pension admin last on their to-do list, with 14% admitting they have never looked at theirs.

One in seven people (16%) also said they didn’t know where to find information on their pensions.

We’ll explore how you can access your pension information, how often you should review your pensions, and how a financial adviser can help.

How can I check my pension?

When you join a pension scheme, such as a workplace pension, you should receive information about your scheme in the post, including how to set up and access your online account.

If you don’t have the information needed to access your pensions online, ask your current employer if they have this. Alternatively, you can contact your provider directly.

What should I check when looking at my pension?

There’s a lot that you can access online when checking your pension, which can help you with your retirement planning.

You can access valuable information such as:

• How much your pension is worth
• A pension forecast from the pension provider
• Where your money is invested and the fund performance
• The risk appetite of your pension fund
• Details of your annual fees
• Your annual pension statements

It’s vital that you regularly check your pensions to ensure you’re saving enough and your pension fund is performing well over the long term.

It’s normal for a pension fund to experience short-term volatility, but if this is a long-term issue, you may want to reconsider your investments.

If you’re getting a pension forecast from your provider, don’t forget that this is based on certain assumptions and is not guaranteed. It’ll also not take into account other pension pots you may have, although you can consolidate your pots so they’re all in one place.

You’ll also want to consider whether the fees are too high for your pension, as this could impact your returns and make it harder for you to build a pension pot that is big enough.

Also, you may want to evaluate the risk appetite of your pension fund. Ask yourself: Are you happy with the investments in your fund? If you’re young, are you taking too little risk?

Upon reviewing your pension, you may decide to switch to another if it has investments that align more with your personal preferences – for example, if you want to invest in companies that don’t use fossil fuels.

How often should I review my pension?

It’s a good idea to review your pension once a year to assess the fund's performance and decide whether or not to make any changes.

If you review your pension more regularly, you may become anxious about your fund's short-term performance and make a rash decision, which could impact your retirement savings.

How can a financial adviser help with my pension?

A financial adviser can help you with your pension by:

• Helping you create a retirement plan and investment strategy.
• Reviewing your pension fund’s performance.
• Making sure you’re being tax-efficient.
• Helping you decide on the best way to access your pension in retirement.
• Helping you decide if pension consolidation is right for your circumstances.
• Advising you on whether you should transfer your pension.

If you’re planning to transfer a pension worth over £30,000 or transfer a defined benefit pension to a defined contribution one, you must get regulated financial advice by law.

How do I find any lost pensions, and can I consolidate them?

Millions of people accumulate many pensions throughout their lengthy careers, so it’s easy to lose track of them all.

If you think you’ve misplaced a pension, all is not lost.

The government has a useful Pension Tracing Service that can help you find a lost personal or workplace pension. Alternatively, you can contact previous employers or your current one to ask them about any pensions you may have.

If you’re considering consolidating your pensions, there’s a lot to take into account, including the management fees, investment performance, and whether you’ll lose any special benefits if you merge your pots into one.

For example, you may have a guaranteed annuity rate, which may be a higher rate than you can find elsewhere and potentially offer you more income. 

While pension consolidation can save you money and make it easier to plan for retirement as you'll only have to check one pot, it’s recommended you get expert financial advice beforehand.

Can I check how much my state pension is worth?

While the state pension is usually not enough to live off in retirement, it can provide a welcome boost to your finances.

To be eligible for any state pension, you need at least 10 qualifying years on your national insurance (NI) record. To be eligible for the full amount, you need 35 qualifying years.

You can find out how much state pension you could get and when you can get it, as well as how to increase it (if possible) using the government’s state pension forecast tool.

Need help planning for retirement?

Planning for retirement can be stressful, as you need to make sure you save enough money—and that it lasts, potentially for 20 years or more.

So, it's a good idea to be proactive and take control of your pensions by ensuring they work as hard as you do.

Unbiased can match you with a qualified financial adviser who can help you review your pension and develop a retirement plan so you don’t run out of money in your golden years.