5 steps to take this Pension Awareness Week

It’s Pension Awareness Week 14 – 18 September, which could serve as a good reminder to review your own pension arrangements. 

The week aims to encourage people to engage more actively with their pensions and feel better informed about their retirement planning, which is also part of our ethos at HarperLees.

Pensions often sit in the background and it can be easy to forget they’re there. However, it’s important to stay abreast of what’s happening with your pension, to make sure it still aligns with your retirement aspirations. 

Additionally, new pension legislation is being introduced over the next two years, so keeping up to date with this may help to support your retirement planning. 

Read on to find out how you can make sure your pension is working as well as possible for you.

1. Regularly review your pension

We’ll always discuss your pension with you at your regular review with us. But we’re happy to talk to you about it anytime, especially if your circumstances change. 

In your review, we can talk about:  

• • How much your pension pot is currently worth and whether you’re still on course for your planned retirement
  • Whether your contributions are enough, or if you could increase them
  • If your investment strategy still aligns with your attitude to risk and is appropriate for your retirement time frame
  • Your nominated beneficiaries.

If you’re approaching retirement, we can also consider how and when you could start to draw an income from your pension. 

Retirement planning shouldn’t be viewed as a once-and-done process. Changes to earnings, family circumstances, aspirations, and legislation could all mean you could need to adjust your strategy. 

2. Track down pensions you may have lost or forgotten

During your career you may accumulate several pensions as you move jobs, or invest in private pensions.

According to Pensions UK: 

• • There is £31.1 billion lying in lost, unclaimed or inactive pension pots
  • The average value of each lost pension is £9,470, rising to £13,620 among people aged 55 – 57. 

This is a not-insignificant amount of money which could be working for your retirement through investment growth, especially if you have more than one pension pot unaccounted for. 

Take a look through your employment history and old paperwork to see if there could be any missing pensions from your working life. 

We can help you to hunt down any previous pensions, or you can use the government’s Pension Tracing Service to find contact details for workplace or personal pension schemes.

3. Consider whether it could be worth consolidating your pensions 

The government’s Pension Schemes Act 2026 will introduce reforms designed to consolidate small workplace pension pots into larger schemes. However, we are still waiting for full details of this legislation, and it’s likely that this will be phased in over several years. 

This scheme will also only apply to certain eligible pension pots. So, it’s a good idea to review your existing pensions and decide whether consolidation could be appropriate. 

Pros of consolidation include: 

• • Potential savings, as you may reduce the fees you’re paying to multiple providers
  • Easy management, as you’re just dealing with one pension fund
  • Clear oversight, as you can take a single view of your investment strategy
  • Potential for more flexibility, as newer plans often have more flexible withdrawal options than older schemes.

Cons of pension consolidation include:

• • Possible exit fees, as some providers charge for making a transfer
  • Potential loss of benefits, such as protected tax-free cash.

4. Remember, pensions will soon be included in your estate for Inheritance Tax purposes

Traditionally, pensions have been a useful tax-efficient asset to pass on to your loved ones as these funds would have fallen outside your estate.

But from April 2027, most unused pension funds will be included in an estate for the first time, which means they could fall into the scope of Inheritance Tax (IHT).

If your retirement plan has been to preserve your pension and spend your ISAs or other assets first, it could be sensible to review this tactic to establish if it is still the right path to pursue. 

We can work with you to balance your retirement planning and your estate planning so they work effectively in tandem, and with the most tax-efficient outcomes. 

5. Bear in mind that the pension age is changing in 2028

From 6 April 2028, the normal minimum pension age (NMPA) will increase from 55 to 57. 

When you reach the NMPA, you can: 

• • Draw an income
  • Withdraw a lump sum
  • Keep paying into your pension
  • Take 25% of your pension as a tax-free lump sum.

If these changes are likely to affect you, we can discuss your options with you. 

Get in touch

We can help you to review your pensions, track down any lost pots, and understand more about how consolidation could work for you. We can also discuss whether new legislation could affect you, and if we would suggest any adjustments to your retirement planning.  Please email us at info@harperlees.co.uk or call 01277 350560 to find out more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future. 

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

The Financial Conduct Authority does not regulate estate planning or tax planning.