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Pensions
Capital at risk. The value of investments can fall as well as rise, and you may get back less than you put in. Past performance is not a guide to future returns.
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. Some links are referral links — we may earn a commission.
Quick answer
Not sure what your pension is doing, or whether to pay in more? Start here. We cover workplace pensions, the State Pension, SIPPs, tax relief and the catches worth knowing.
The short version: if you’re employed, staying in your workplace pension usually means your employer pays in too. You also get tax relief on your own contributions. The State Pension sits on top, based on your National Insurance record — check your forecast on GOV.UK. A SIPP gives you more control, but no employer money unless your employer agrees to pay in.
Pensions are long-term investments. The value can go down as well as up, so you could get back less than has been paid in. Capital at risk.
For free, impartial guidance, use MoneyHelper. If you’re 50 or over with a defined contribution pension, you can book a free Pension Wise appointment.
Key decision routes
Pick the question you’re trying to answer.
The three types of pension compared
| Type | Who pays in | When you can take it | Key figure (source: GOV.UK) |
|---|---|---|---|
| State Pension | Built up through National Insurance | From State Pension age (rising from 66 to 67 between 2026 and 2028) | Full new State Pension £241.30 a week; 35 qualifying years for the full amount |
| Workplace pension | You, your employer and tax relief | Usually from 55 (57 from 6 April 2028) | Legal minimum usually 8% of qualifying earnings, at least 3% from the employer |
| Personal pension / SIPP | You and tax relief (employer only if they agree) | Usually from 55 (57 from 6 April 2028) | Annual allowance £60,000 across all your pensions. Tax-free lump sum usually up to 25%, capped at £268,275 |
Figures as shown on our pensions guides, last updated 3 October 2026. Rules change — check GOV.UK and your scheme’s own information.
Lost track of an old pension? The government’s Pension Tracing Service can help you find contact details for old schemes. It won’t tell you whether you have a pension or what it’s worth, so you’ll need to contact the scheme.
The catch
Your money is usually locked away until 55, rising to 57 from 6 April 2028, and the value can fall as well as rise. Charges matter over decades, and it’s easy to lose track of old pots when you change jobs.
Taking money out early through an unregulated “pension release” scheme can trigger large tax charges and is a common scam. Check the firm on the FCA register first.
Who it’s for — and who should avoid it
Who it’s for
- Employees eligible for auto-enrolment — opting out usually means giving up employer contributions
- Self-employed people with no workplace scheme
- Anyone who can leave money untouched until minimum pension age
- Higher-rate taxpayers who can claim extra relief
Who should avoid it
- Money you might need before minimum pension age — an emergency fund or Cash ISA may fit better
- Anyone paying in without checking charges on an old or small pot
- People considering a transfer from a defined benefit (final salary) scheme without regulated advice
- Anyone approached about “unlocking” a pension early — it’s a common scam
FAQs
What’s the difference between a pension and an ISA?
Pensions get tax relief on the way in and are taxed (apart from a tax-free part) on the way out, but you usually can’t access them until 55 (57 from 6 April 2028). ISAs don’t get tax relief, but you can usually take money out at any time tax-free. See pension vs ISA.
How much is the State Pension?
The full new State Pension is £241.30 a week. What you get depends on your National Insurance record — check your forecast on GOV.UK.
Should I opt out of my workplace pension?
Opting out usually means losing your employer’s contributions as well as tax relief. MoneyHelper can help you think it through.
Can I lose a pension?
It’s easy to lose track of old workplace pensions. The Pension Tracing Service can help you find contact details for old schemes.
Where can I get free help with my pension?
MoneyHelper offers free, impartial guidance. If you’re 50 or over with a defined contribution pension, you can book a free Pension Wise appointment.
Do you recommend pension providers?
No. Our pensions guides explain how things work. They don’t pick providers for you.