01

The workplace pension

Eligible employees are automatically enrolled into a workplace pension, and the employer must contribute. In a qualifying scheme using the statutory minimum, total contributions are at least 8% of qualifying earnings, including at least 3% from the employer.

Schemes can calculate contributions differently and employers may pay more. Before increasing or reducing a contribution, check the basis, matching structure, investment option, charges and effect on take-home pay.

02

Personal pensions and SIPPs

A personal pension can be useful for self-employed people, additional saving or consolidating suitable older pots. A SIPP offers wider investment choice, accompanied by the responsibility to choose investments and control costs.

With relief at source, a provider normally claims basic-rate tax relief: an £80 personal payment becomes £100 in the pension. Further relief may be claimable by people paying tax above the basic rate, subject to their circumstances. Annual allowances, earnings and tapering rules can limit relief.

03

The State Pension

The full new State Pension is £241.30 a week in the 2026/27 tax year. The amount an individual receives depends on their National Insurance record; people with records before April 2016 can have transitional calculations, so 35 years does not guarantee the full amount for everyone.

Check the official State Pension forecast and National Insurance record. Credits for caring and some benefits can protect qualifying years, and voluntary contributions can sometimes fill gaps after checking whether they will increase the forecast.

04

Access and retirement income

Most private pensions can usually be accessed from the normal minimum pension age, which rises from 55 to 57 in April 2028 for most people. The State Pension has its own age, and both ages can change.

Private pension withdrawals can create tax, investment and longevity decisions. Pension Wise offers free guidance for people aged 50 or over with a UK defined-contribution pension, while regulated advice may be appropriate for irreversible or complex choices.

Sources and further reading

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