How to Check If Your Workplace Pension Is On Track

People usually get how to check if your workplace pension is on track wrong when they focus on the headline figure and ignore the trade-offs underneath it.

Most people check their bank balance more often than their pension pot.

Yet that workplace pension you're quietly paying into each month could be worth hundreds of thousands of pounds by the time you retire.

The question is: will it be enough?

Checking whether your workplace pension is on track isn't about complex calculations or financial wizardry.

It's about knowing what to look for, understanding the numbers that matter, and spotting warning signs before they become problems.

This guide walks you through the practical steps to assess your pension's health, using tools and benchmarks that actually work in the real world.

## Understanding What "On Track" Actually Means Before you can check if your pension is on track, you need to know what you're aiming for.

The retirement income you'll need depends on the lifestyle you want, but there are some useful benchmarks.

The Pensions and Lifetime Savings Association publishes annual Retirement Living Standards that break down costs for minimum, moderate, and comfortable retirements.

For a single person, a minimum retirement (covering basics) requires around £14,400 per year, a moderate lifestyle needs about £31,300, and a comfortable retirement costs roughly £43,100 annually.

Remember, these figures assume you own your home outright.

If you're still paying a mortgage or rent in retirement, you'll need considerably more.

The full new State Pension currently pays £203.85 per week (£10,600 annually), so if you're aiming for that moderate lifestyle, your workplace pension needs to generate around £20,700 per year.

For a comfortable retirement, you're looking at £32,500 from your private pension. ## Step One: Locate All Your Pension Statements You can't check if you're on track if you don't know what you have.

Start by gathering statements from every workplace pension you've ever contributed to.

If you've changed jobs several times, you might have multiple pots scattered across different providers.

The government's Pension Tracing Service (run by The Pensions Regulator) helps you track down lost pensions using just your National Insurance number and previous employers' names.

It's free and surprisingly effective, though it won't tell you how much is in each pot—just who holds them.

Once you've located all your pensions, request up-to-date statements.

Most providers offer online access, but you can always phone or write if you prefer.

You need to know: - Current pot value - Contribution rates (yours and your employer's) - Projected retirement income at your expected retirement age - Annual management charges - Investment fund details

## Step Two: Calculate Your Total Projected Income Now comes the maths.

Your pension statement will show a projected retirement income, but these projections often use outdated assumptions or don't account for the State Pension.

Here's what you need to add up: **State Pension**: Check your State Pension forecast at gov.uk/check-state-pension.

You'll need your Government Gateway login.

This tells you exactly what you'll receive based on your National Insurance record, not a generic estimate. **Workplace pensions**: Add together the projected annual income from all your workplace pensions.

Make sure these projections use the same retirement age—if one assumes you'll retire at 65 and another at 68, you're not comparing like with like.

**Other income**: Include any other retirement income sources—rental properties, defined benefit pensions from previous employers, or personal pensions you've set up independently.

The total gives you your projected retirement income.

Compare this against the lifestyle benchmarks mentioned earlier.

If there's a gap, you need to act.

## Step Three: Check Your Contribution Rates The amount going into your pension matters enormously.

Thanks to compound growth, small increases in contributions now can mean tens of thousands of pounds extra in retirement.

The legal minimum for auto-enrolment is 8% of qualifying earnings (with at least 3% from your employer).

But here's the thing: qualifying earnings only count salary between £6,240 and £50,270.

If you earn £30,000, you're only contributing 8% of £23,760, not your full salary.

Many financial advisers suggest contributing at least 12-15% of your gross salary for a comfortable retirement, especially if you started saving in your 30s or later.

The old rule of thumb says you should contribute half your age as a percentage when you start your pension.

Start at 30?

Contribute 15%.

Start at 40?

You need 20%.

*Assumes 5% annual growth, 2% salary increases, and includes tax relief.

Figures are illustrative only.

Check your payslip to see exactly what percentage you're contributing.

If it's just the minimum 5% (your share of the 8% total), consider whether you can afford to increase it.

Even an extra 1% makes a difference over decades.

## Step Four: Understand Your Investment Performance Your pension isn't just a savings account—it's invested in stocks, bonds, and other assets.

How those investments perform directly affects your final pot.

Most workplace pensions use a default fund, typically a "lifestyle" or "target date" fund that automatically adjusts risk as you approach retirement.

These are fine for most people, but you should still check: **Annual charges**: These are shown as a percentage (the Annual Management Charge or Total Expense Ratio).

Anything above 0.75% is expensive for a modern workplace pension.

The difference between 0.5% and 1% in charges can cost you tens of thousands over a career. **Fund performance**: Compare your fund's performance against its benchmark.

If it's consistently underperforming, that's a red flag.

Your annual statement should show this, or you can check on your provider's website. **Asset allocation**: Look at what you're actually invested in.

If you're 30 and your pension is 50% in bonds and cash, you're probably being too cautious.

If you're 60 and 100% in equities, you might be taking unnecessary risk.

"The biggest mistake people make is setting up their pension and never looking at it again.

Your circumstances change, markets change, and your pension strategy should change with them." — Financial adviser quoted in Which?

Money ## Step Five: Check for Warning Signs Certain red flags suggest your pension isn't on track, even if the numbers look reasonable on paper: ✅ **Good signs your pension is healthy:** - Contributing at least 12% of gross salary - Charges below 0.75% annually - Multiple pensions consolidated (where appropriate) - Regular reviews and adjustments - Projected income meets your retirement goals - Investments appropriate for your age and risk tolerance ❌ **Warning signs you need to act:** - Only contributing the auto-enrolment minimum - Haven't reviewed your pension in over two years - Multiple small pension pots left with old employers - Charges above 1% annually - Projected income falls short of minimum living standards - No idea what your pension is invested in - Opted out of workplace pension to save money If you spot multiple warning signs, don't panic—but do take action.

The earlier you address problems, the easier they are to fix. ## Step Six: Use Online Calculators and Tools Several free tools help you check if you're on track: **MoneyHelper Pension Calculator**: Run by the government's MoneyHelper service, this tool lets you input your current pension value, contributions, and retirement age to see projected outcomes.

It's straightforward and uses realistic assumptions. **Provider calculators**: Most pension providers offer calculators on their websites.

These are useful but remember they only show that specific pension, not your full retirement picture.

**PensionBee's pension calculator**: Even if you're not a customer, their online calculator is free to use and particularly good at showing the impact of increasing contributions.

When using calculators, be realistic about investment returns.

The FCA requires projections to use growth rates of 2%, 5%, and 8% to show a range of outcomes.

The middle figure (5%) is reasonable for a balanced pension fund over the long term, but nothing's guaranteed.

## Step Seven: Consider Consolidation If you've got multiple small pension pots from previous jobs, consolidation might make sense.

Combining pensions can: - Reduce overall charges (one set of fees instead of several) - Make tracking easier - Give you access to better investment options - Simplify estate planning But don't consolidate blindly.

Some older pensions have valuable guarantees—guaranteed annuity rates, protected tax-free lump sums, or lower retirement ages.

You'd lose these by transferring out.

Before consolidating: 1.

Check for exit penalties on your existing pensions 2.

Compare charges between old and new pensions 3.

Look for valuable guarantees or benefits 4.

Consider whether the new pension offers better investment options 5.

Get advice if you're transferring more than £30,000 or have a defined benefit pension The Pensions Advisory Service (now part of MoneyHelper) offers free guidance on whether consolidation makes sense for your situation. ## Step Eight: Factor in the State Pension Properly Many people underestimate how much the State Pension contributes to retirement income.

At £10,600 annually, it covers a significant chunk of basic living costs.

Check your State Pension forecast at gov.uk/check-state-pension.

This shows: - Your current projected State Pension - When you can claim it (your State Pension age) - Whether you have gaps in your National Insurance record - How much more you could get by filling those gaps If you have gaps, you can usually buy missing years by making voluntary National Insurance contributions.

This costs £824.20 per year (for 2024/25) and increases your State Pension by around £275 annually.

That's a return of 33% in the first year alone, and it keeps paying for life.

You can typically only buy back the previous six years, though special rules currently allow purchases back to 2006 until April 2025.

If you're close to State Pension age with gaps, this is worth investigating urgently.

## Step Nine: Adjust Your Retirement Age Expectations If your pension isn't on track for your target retirement age, you have three options: save more, spend less in retirement, or work longer.

Often, a combination works best.

Working even two or three years longer has a dramatic effect: - More years of contributions going in - More years of investment growth - Fewer years of withdrawals needed - Higher State Pension (if you defer claiming it) If you planned to retire at 65 but work until 67, you might increase your pension pot by 20-30%.

That's the equivalent of increasing contributions by several percentage points for your entire career.

This doesn't mean you have to work full-time until 67.

Many people transition gradually—going part-time, freelancing, or taking a less stressful role.

You can start drawing your pension from age 55 (rising to 57 in 2028) even if you're still working, which gives you flexibility.

## Step Ten: Know When to Get Professional Advice Some pension situations are straightforward enough to handle yourself.

Others need professional help.

Consider paying for regulated financial advice if: - You're thinking of transferring a defined benefit pension - You have a pension pot worth more than £100,000 - You're within five years of retirement - You have complex circumstances (multiple pensions, property, business assets) - You're considering early retirement - You've received a pension scam approach Financial advisers typically charge £150-£250 per hour or a percentage of assets under management.

For pension-specific advice, expect to pay £500-£2,000 depending on complexity.

Make sure any adviser you use is FCA-regulated.

Check the Financial Services Register at register.fca.org.uk.

If something goes wrong with regulated advice, you have recourse to the Financial Ombudsman Service and the Financial Services Compensation Scheme.

For simpler questions, MoneyHelper's free guidance service (0800 011 3797) can point you in the right direction without the cost of full advice.

## Common Mistakes That Derail Pension Plans Even people who check their pensions regularly can make costly mistakes: **Stopping contributions during career breaks**: Taking a year off contributions in your 30s might cost you £30,000-£40,000 in lost retirement income.

If you can afford even minimal contributions during career breaks, maternity leave, or periods of part-time work, it's worth doing.

**Ignoring salary sacrifice**: If your employer offers salary sacrifice for pensions, you save National Insurance as well as income tax.

For a higher-rate taxpayer, this can mean £47 going into your pension for every £32 of take-home pay you give up.

**Forgetting about the annual allowance**: You can contribute up to £60,000 per year into pensions with tax relief (or 100% of your earnings if lower).

If you get a bonus or inheritance, using it to boost your pension can be tax-efficient—but exceed the annual allowance and you'll face tax charges.

**Leaving pensions in cash**: Some people switch their pension to cash or low-risk funds after market falls, then forget to switch back.

Leaving your pension in cash for years means missing out on growth and inflation eroding its value.

**Falling for pension scams**: If someone contacts you out of the blue offering to unlock your pension early, access overseas investments, or provide a free pension review, it's almost certainly a scam.

The FCA estimates pension scams cost victims an average of £50,000 each.

## Making Adjustments When You're Behind If you've checked your pension and discovered you're not on track, here's how to close the gap: **Increase contributions gradually**: Rather than trying to jump from 5% to 15% overnight, increase by 1% each year.

You'll barely notice the difference, but over time it adds up significantly.

**Use pay rises**: Commit to putting half of any pay rise into your pension.

Your take-home pay still increases, but your pension gets a boost too. **Redirect other savings**: If you're saving into a cash ISA while not maximising pension contributions, consider switching priorities.

Pensions offer tax relief that ISAs don't, making them more efficient for retirement saving.

**Consolidate and reduce charges**: If you're paying 1.5% in charges across multiple old pensions, consolidating into a modern low-cost pension charging 0.3% could save you thousands. **Review your retirement budget**: Maybe you don't need £43,000 a year.

If you're happy with a more modest lifestyle, you might already be on track for the retirement you actually want.

**Consider part-time work in retirement**: Even earning £5,000-£10,000 a year from part-time work in your late 60s can significantly reduce the pressure on your pension pot. ## The Bottom Line Checking if your workplace pension is on track isn't a one-time task—it's an ongoing process.

Your circumstances change, markets fluctuate, and pension rules evolve.

What looked adequate five years ago might not be enough now.

Set aside an hour each year to review your pension properly.

Gather your statements, check your projections, compare against your goals, and make adjustments if needed.

That single hour could be worth tens of thousands of pounds in retirement.

The good news?

If you're reading this, you're already ahead of most people.

Simply being aware of your pension situation and taking steps to check it puts you in a strong position.

Even if you discover you're behind, there's almost always something you can do about it—and the earlier you act, the easier it is to get back on track.

Your workplace pension might be the largest asset you ever accumulate, potentially worth more than your house by the time you retire.

It deserves at least as much attention as you give to your current account balance or your annual holiday budget.

Check it, understand it, and adjust it when needed.

Your future self will thank you.