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 are undersaving 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.
1. Increase your contributions
If you have a defined contribution workplace pension, 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.
Calculations by Standard Life show that an employee increasing their contributions from 5% of their salary to 7% at the age of 22 could end up with a pot worth an extra £52,000 (adjusted for inflation) by the age of 68. This goes up to an extra £79,000 if you can contribute 8%.
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.
- Find out more: how much will I need to retire?
2. Get the tax relief you’re entitled to
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).
It 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 deducted from your salary after tax (this system is 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.
- Find out more: calculate pension tax relief
3. Take advantage of salary sacrifice
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 contributions.
But with contributions made using salary sacrifice, because your salary is lower, the amount of National Insurance you pay is also reduced.
For example, a £100 pension contribution made via salary sacrifice only costs £72 if you’re a basic-rate taxpayer (as you’ll save £8 in National Insurance on top of £20 in income tax) or £58 if you’re a higher-rate taxpayer (you’ll save £2 National Insurance 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).
- Find out more: what is salary sacrifice for pensions?
4. Track down lost pots
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.
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.
- Find out more: how to find old pensions
5. Combine your pensions
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, 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.
- Find out more: should I combine my pensions?
6. Check your state pension
You won’t get the state pension until you turn 66 (rising to 67 between April 2026 and April 2028), but it provides a key source of retirement income.
From April 2026, the full level of new state pension will be worth £241.30 a week, but the exact amount you get will depend on your National Insurance (NI) record and whether you were ‘contracted out’ of the additional state pension before 2016.
You need 35 years’ worth of National Insurance contributions to get the full state pension and 10 years to get anything at all.
A state pension forecast will provide you with an estimate of how much you could get – and when you’ll qualify. It will also highlight any gaps in your National Insurance 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 credits.
It is important to check with the DWP Future Pension Centre first to make sure you will benefit from the extra credits.
- Find out more: should I top up my state pension?
7. Seek advice or guidance
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 search for a financial adviser. 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 who have 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.
- Find out more: how to get pensions advice and guidance for your retirement
8. Delay accessing your pensions
If you have a defined contribution pension – the most common type of private pension – you can generally access your money at 55 (rising to 57 in 2028).
But the longer you leave your pension untouched, the longer it will remain invested and have the opportunity to grow further.
If you are using money from your pension to purchase an annuity you’ll get a better rate the older you are.
When you 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 than originally anticipated.
Most pension schemes do have a maximum age when you must start taking your money by (usually 75).
- Find out more: ways to access your pension
9. Resist the rush for tax-free cash
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 the money 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 the money. 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 that you are ultimately £63,000 better off (based on a pension fund of £500,000 at age 55).
- Find out more: can I take a lump sum from my pension?
10. Claim all benefits you’re entitled to
Pension credit can boost your state pension if you’re on a low income. It is 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 according to the government around a quarter of people who are eligible 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.
- Find out more: over 60s benefits