It is never too early to think about retirement. The decisions you make today about how much you save and where you save it can have a significant impact on the kind of life you enjoy later. Building a good pension plan does not have to be complicated, but it does require a bit of thought and some consistent action over time.
Start as early as you can
The earlier you start saving into a pension, the more time your money has to grow. This is because of compounding, where the returns you earn start generating their own returns. Even small, regular contributions made over many years can build into a much larger pot than larger contributions made later in life. If you have not started yet, the best time is now.
Make the most of your workplace pension
If your employer offers a workplace pension, this is one of the most valuable benefits available to you. Under auto-enrolment rules, most employees are automatically enrolled into their employer’s scheme, with contributions from both you and your employer going in each month. It is worth checking how much your employer will contribute and whether increasing your own contributions triggers a higher employer match. That extra employer contribution is essentially free money towards your retirement.
Think about a personal pension too
A workplace pension is a great foundation, but you may also want to consider a personal pension on top, particularly if you are self-employed, have changed jobs frequently, or want to save more than your workplace scheme allows. There are various providers to choose from, so comparing charges and investment options before committing is worthwhile.
Take advantage of tax relief
One of the most compelling reasons to save into a pension is the tax relief you receive. Basic rate taxpayers get 20% tax relief on contributions, meaning a £100 contribution only costs you £80 out of pocket. Higher and additional rate taxpayers can claim even more. There is an annual allowance that caps how much you can contribute with tax relief each year, currently £60,000 for most people, so it is worth understanding what applies to your situation.
Spread your investments
Most pensions invest your money across a range of assets such as shares, bonds, and property. A well-diversified portfolio helps to manage risk by not putting all your eggs in one basket. Many pension providers offer ready-made investment options based on your age or risk appetite, which can be a simple way to stay appropriately invested without needing to manage it yourself.
Review your plan regularly
Life changes, and your pension plan should reflect that. It is a good idea to check in on your pension at least once a year to make sure your contributions are still appropriate, your investments still match your attitude to risk, and you are on track for the retirement income you want. As you get closer to retirement, you may want to reduce the level of investment risk you are taking.
Keep up with the rules
Pension rules and allowances can change, so it pays to stay informed. Changes to the State Pension age, annual allowances, and tax relief rules can all affect your planning. A financial adviser can help you keep on top of these and make adjustments where needed.
Get professional advice
Pension planning is one area where professional advice can make a real difference. An adviser can look at your full picture, from existing pensions and savings to your expected retirement income needs, and help you put together a plan that gives you the best chance of a comfortable retirement.
Contact Nexus IFA
A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates, and tax legislation.
Tax planning advice is not regulated by the Financial Conduct Authority.
Approved by In Partnership FRN 192638 June 2026
