Pensions at Every Age: From "Am I In It?" to "When Can I Stop?"

The two pensions most people have

Most people in the UK will build up two kinds of pension:

• The State Pension, paid by the government, based on your National Insurance record. You usually need 35 qualifying years for the full new State Pension and at least 10 years to get anything at all.
• Workplace and personal pensions, which build up from your contributions, your employer's contributions and tax relief, plus any investment growth.

Together they're meant to give you an income when you stop working. The questions to ask change as you go through life.

Starting work: "Am I in it?"

If you're employed, aged at least 22 and under State Pension age, and earn over a set amount, your employer must automatically enrol you into a workplace pension. This is called auto-enrolment. The minimum total contribution is 8% of your qualifying earnings, with at least 3% from your employer and the rest from you, including tax relief.

Things to check:

• Look at your payslip. You should see a pension deduction.
• Find out whether your employer will pay more if you do. Many do, and it's one of the best deals available.
• Think carefully before opting out. You'd lose your employer's contributions as well as your own.

Your twenties and thirties: small amounts, big difference

Money paid in early has the longest time to grow. Even modest increases make a big difference over decades. A common approach is to increase your contribution by 1% each time you get a pay rise, so you never notice the difference in your take-home pay.

If you're saving for a first home as well, a Lifetime ISA may be worth knowing about. If you open one before you turn 40, you can save up to £4,000 a year and the government adds a 25% bonus. It can be used for a first home or from age 60, but there's a charge for withdrawing for other reasons, so it's important to understand the rules before you start.

Changing jobs: keep track

Most people will have several pensions by the time they retire. Every time you leave a job, make a note of the pension provider and keep your contact details up to date with them. If you've lost track of an old pension, the government's free Pension Tracing Service can help you find it.

Your forties: the reality check

This is often when retirement starts to feel real. A few useful checks:

• Check your State Pension forecast on gov.uk. It shows how much you're on course for and whether there are gaps in your National Insurance record.
• Gather your pension statements and add up roughly what you have.
• Ask "what income would I need?" Many people find it helpful to start with what they spend now, then think about what would change.
• Check your nominated beneficiaries with each pension provider. Life changes, and these forms often get forgotten.

Your fifties: options start to open up

You can normally start taking money from a personal or workplace pension from age 55. This minimum age is due to rise to 57 from April 2028. Being able to access your pension doesn't mean you should, and decisions made now can be hard to undo.

When you can access a defined contribution pension, you usually have several choices, including taking some as a tax-free lump sum, buying a guaranteed income for life (an annuity), drawing an income flexibly while the rest stays invested, or a mix. Each has different trade-offs around tax, flexibility and security.

If you're 50 or over and have a defined contribution pension, you can book a free, impartial appointment with Pension Wise, the government-backed guidance service from MoneyHelper. It's well worth doing before you make any decisions.

Watch out for scams

Be very cautious of unexpected calls, emails or messages offering to "unlock" your pension, free pension reviews, or investments with unusually high returns. Unsolicited pension calls are illegal in the UK. If in doubt, hang up and check with your provider directly.

Your sixties: "When can I stop?"

The State Pension age is currently rising from 66 to 67, phased in between 2026 and 2028 depending on your date of birth. Your forecast on gov.uk will show your exact date. Further increases are planned in future, so it's worth checking rather than assuming.

The question of when you can stop work comes down to whether your income will cover your spending, for as long as you need it to. That means thinking about:

• What you'll actually spend in retirement, which often changes over time
• How much will come from guaranteed sources such as the State Pension, any defined benefit pension and any annuity
• How long your other savings and pensions need to last
• Whether you'd like to wind down gradually rather than stop all at once

A word on tax relief and limits

Pension contributions generally get tax relief, which is what makes them such an efficient way to save. There are limits on how much you can pay in each year with tax relief, and these can be lower for higher earners or for people who have already started taking money flexibly from a pension. If you're thinking of paying in large amounts, it's worth checking where you stand first.