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No matter how near or far off retirement is for you, it's never too late to give your savings a boost.
Nearly 15 million people aren't saving enough for retirement, according to government data from 2025. But getting to grips with your pensions now will increase your chances of being able to afford the retirement lifestyle you want.
From making the most of tax relief to combining multiple pots, here are 10 ways to maximise your savings.
If you have a defined contribution workplace pension – the most common type of pension today – minimum contributions are set at 8% of your 'qualifying earnings' (in other words, earnings between £6,240 and £50,270).
This is made up of 5% from you (including pension tax relief from the government) and 3% from your employer.
Whether you have a workplace or personal pension, increasing your contributions by even a small amount can make a big difference over time, especially if you start early.
This table shows how much someone who starts with a salary of £25,000 at the age of 22 could save by the time they turn 68, depending on their level of pension contributions:
| Minimum contributions (5% from employee; 3% from employer) | Contributions of 6% from employee; 3% from employer | Contributions of 7% from employee; 3% from employer | Contributions of 8% from employee; 3% from employer | |
| Total pot value by the age of 68 | £210,000 | £236,000 | £262,000 | £289,000 |
| Difference | n/a | +£26,000 | +£52,000 | +£79,000 |
Source: Standard Life. Figures are illustrative and assume 3.5% salary growth a year, 5% annual investment growth and an annual management charge of 0.75%. They also account for 2% inflation. Earnings limits not applied.
Bear in mind that some employers will match your contributions, giving your pension an extra boost.
Even if you can't commit to increasing your regular contributions, think about making extra one-off contributions from time to time – for example, if you get a bonus.
Basic-rate (20%) tax relief is usually added to your pension contributions automatically. This means that if you wanted to top up your pension by £100, you'd only need to pay in £80, as the government would add £20.
But if you're a higher (40%) or additional (45%) rate taxpayer, you may need to proactively claim the extra 20% or 25% tax relief you're entitled to. Income tax rates differ in Scotland, and the pension tax relief you're entitled to is linked to whichever rate you pay.
Whether you need to claim tax relief depends on the scheme you're in. If you have a personal pension, including a self-invested personal pension, or a workplace pension where contributions are deducted from your salary after tax (known as 'relief at source'), then you will need to claim the extra tax relief from HMRC.
If your pension is set up under a ‘net pay’ or salary sacrifice arrangement, then pension contributions are deducted from your salary before income tax is paid, and your scheme claims back tax relief at your marginal rate of income tax. This means you'll automatically get the tax relief you're entitled to.
Paul Davies, Which? pensions expert, says:
Pension targets will usually appear challenging, but you’ll get help from two directions – from the government and via the virtuous effect of compound interest.
Making pension contributions at the start of your career means that you benefit from compound interest over a longer period. Similarly, if you increase contribution rates you’ll grow the base of savings.
Compound interest means that investment returns on contributions are reinvested to produce their own returns, allowing your pot to ‘snowball’ over the decades.
Pension tax relief sometimes feels like the hidden gem of retirement saving.
It’s a government top-up representing 20%, 40% or 45% of the money that goes into your retirement pot. Pension tax relief reclaims cash that would otherwise go into the coffers of HM Revenue & Customs in income tax.
Plus, that extra money will itself benefit from compound growth.
Using salary sacrifice will result in more money ending up in your pension. It involves giving up part of your salary, in return for which your employer pays an equivalent amount into your pension.
While money you pay into your pension is exempt from income tax (subject to certain limits), it's usually subject to National Insurance (NI) contributions.
But because your salary is lower when you make contributions using salary sacrifice, the amount of NI you pay is also reduced.
For example, a £100 pension contribution made via salary sacrifice costs only £72 if you're a basic-rate taxpayer (as you'll save £8 in NI on top of £20 in income tax) or £58 if you're a higher-rate taxpayer (you'll save £2 in NI on top of £40 in income tax).
There is currently no limit on the amount that you can pay into your pension using salary sacrifice. But from April 2029, the amount you can contribute to a workplace pension via salary sacrifice will be capped at £2,000 a year.
This means now is a good time to look at increasing your contributions via salary sacrifice, if your employer offers it (not all do).
When you move to a new employer, your pension won't automatically follow you. This means that over time, you can build up multiple pension pots in different places.
The Pensions Policy Institute estimates that 3.3 million pension pots are lost or unclaimed in the UK, accounting for £31.1 billion in savings.
Start by making a list of the employers you've worked for in the past, and check if you have pension paperwork for each of them.
If you can't find it, contact the relevant employer or the pension company that manages the scheme.
If you're not able to find the contact details for a previous employer or pension provider, you can use the government's free pension tracing service. You simply need to enter the name of an employer or pension provider.
Once you've tracked down all the pensions you have, think about whether to bring some or all of them together in one place.
Not only can this make it easier to keep track of your retirement savings, but it can also save you money if you're transferring to a scheme with lower fees.
If you're an experienced investor, consolidating your pensions in a self-invested personal pension (Sipp) can give you more control over how your money is invested.
The state pension is a key source of retirement income, even if the age you get it at is gradually rising, from 66 to 67 in the period to April 2028.
In 2026-27 the full level of the new state pension is worth £241.30 a week, but the exact amount you get will depend on your NI record and whether you were ‘contracted out’ of the additional state pension before 2016.
You need 35 years' worth of NI contributions to get the full state pension and 10 years to get anything at all.
A state pension forecast will give you an estimate of how much you could get – and when you'll qualify. It will also highlight any gaps in your NI record that could stop you from getting the full amount.
If you have any gaps in your NI record (years where you didn’t pay National Insurance or qualify for NI credits), you can top up your state pension by buying voluntary National Insurance contributions.
It's important to check with the DWP Future Pension Centre first to make sure you will benefit from the extra contributions.
As you approach retirement, you'll need to make a decision about how to access the money in your pension.
Seeking advice from a regulated independent financial adviser will help you make the right decision to suit your circumstances.
A comparison site is a good place to find one. Unbiased is a free-to-use service that can connect you with independent, FCA-regulated financial advisers. Similarly, VouchedFor is a directory of verified advisers with reviews from real clients.
However, the cost of advice can be a barrier for many. The latest figures from the Financial Conduct Authority show that only 31% of those who accessed a pension for the first time in 2024-25 took regulated financial advice.
There are other ways to get support if you aren’t confident of making a decision on your own, although, unlike financial advice, these won't be tailored to your individual needs.
For example, you can get free guidance from Pension Wise. This service, from government-backed Moneyhelper, offers face-to-face, telephone or online appointments to over-50s with a defined contribution pension.
If you're a Which? Money member, you also have access to our 1-to-1 guidance service as part of your membership.
Whether you’re unsure if you have enough to retire, or are already accessing your savings, our money guidance service can talk you through your options. Which? Money members get unlimited access to them via phone.
Find out moreIf you have a defined contribution pension – the most common type of private pension – you can generally access your money at 55. This rises to 57 on 6 April 2028.
But the longer you leave your pension untouched, the longer it will remain invested and have the potential to keep growing.
If you're using money from your pension to buy an annuity, you’ll get a better rate the older you are.
The age you'll start receiving money from a defined benefit pension will depend on the individual scheme rules, so you should check with your provider. It's typically 60 or 65.
Delaying access to a defined benefit pension will mean a higher guaranteed income than your scheme originally promised. This is because it’s likely to pay out over a shorter period.
Most pension schemes do have a maximum age for when you must start taking your money (usually 75).
You can take up to 25% of a defined contribution pension as a tax-free lump sum from the age of 55 (up to a maximum of £268,275 across all your pensions).
Taking tax-free cash from your pension may seem like a no-brainer, but withdrawing it earlier than planned could result in losing a significant amount of money, compared with leaving it invested to be taken at a later date.
Before taking your tax-free lump sum, think carefully about what you'll do with it. It may be that you need the funds to pay off the last of a mortgage or other debts.
Research from AJ Bell indicates that leaving all your money in your pension until age 65, rather than taking 25% tax-free at 55, could mean you're ultimately £63,000 better off (based on a pension fund of £500,000 at age 55).
Pension credit can boost your state pension if you're on a low income. It's also a gateway to a range of other benefits, such as winter fuel payment and help with housing costs, including a council tax reduction.
It's worth around £3,900 a year on average, but the government says that around a quarter of eligible people fail to claim it.
If you think you may be eligible, use the government's pension credit calculator to check how much you could get.
If you haven't yet reached state pension age but are on a low income, you may be eligible for universal credit.
Regardless of your income, there are also various discounts available to over-60s, including reduced transport costs and cut-price cinema tickets.