Pay your pension some attention
Your pension is there to help you make the most of your retirement – your longest ever holiday. The sooner you take charge, the better your odds of achieving your ideal post-work life, because both the essentials and the indulgences require proper financial preparation.
Just 4 in 10 people feel confident they’ll be able to afford to retire. The better you know your pension, the more confident you'll be when approaching retirement.
Our HL Know Your Pension checklist offers tips to boost your pension and see how much your pension might be on track to pay.
Easy-to-use online tools and calculators can help you plan better for your retirement. For those looking to maximise their pension savings, our pension essentials and FAQs could help you get the information you need.
Important information: This page is to help you know more about pensions and is not personal advice. If you're not sure what's best for your situation, you should seek financial advice. Money in a pension is not usually accessible until age 55 (57 from 2028). Investments rise and fall in value, so you could get back less than you invest.
Know Your Pension checklist
Find out how big your pension pot is
Stay on top of your retirement goals by knowing what's in your pension pot. Check in with your pension at least once a year, increasing the frequency as your retirement date nears.
If your pension is a defined contribution scheme, your provider will normally send you a statement telling you about your pot once a year. If you have a final salary or career average pension and your provider doesn't give you a statement, you have the right to ask for one.
Not sure where to find old pensions? You can use the government’s Pension Tracing Service to track them down.
More on lost pensions and how to find them
If you are approaching retirement, consider checking in on your State Pension to work out how much income you're going to need. For a comfortable living standard in retirement, it’s important to save into a workplace or private pension alongside anything the state offers.
Check on your current contributions
It's good to check exactly how much is going into your pension and if it's on track for your retirement. It’s typically recommended that people aim for a pot that will provide you with 50%-66% of your annual income. For someone earning £30,000 they should target £15,000-£20,000 annual income in retirement.
When reviewing the size of your pension, also make a note of how much you're paying in and how much your employer pays. Check to see if your company offers a greater level of contribution and if so, think about making the most of it.
Boost your pension quickly by paying in more. With 20%-45% tax relief available, £100 could cost you as little as £55. If you can afford it, and stay within your pension allowances, your future self will benefit. Remember, money in a pension is not usually accessible until age 55 (rising to 57 in 2028). Scottish rates of tax differ.
Consider bringing your old pensions together
It's important to know how many pensions you have, how they work (including your options at retirement) and what level of service you're getting in exchange for the fees you're paying. If you're less than satisfied, you might consider transferring to a new pension plan like the HL SIPP.
Bringing all your pensions together can also make it easier to see exactly how your investments are performing, and if you're still on track to reach your retirement goals. It also makes things simpler, with one statement, one login and one provider to instruct.
Before transferring, check you won't lose any valuable benefits or have to pay high exit fees. Pensions are usually transferred as cash so you'll miss any market rises or falls for a period.
Review your investments
Look at how your investments are performing, check that they still match your risk appetite, especially when considering the timescale you have left to invest.
Ask yourself, is your money working as hard as it could be? Time is your greatest ally when investing. If you're comfortable with selecting something more adventurous, doing so early on in your pension journey means you have a longer recovery period to ride out any market fluctuations. But remember, investments can go up or down, and you might get back less than you invest.
If you choose to invest in the HL SIPP (Self-Invested Personal Pension), you can choose from over 4,000 funds, shares, investment trusts and more to build your own portfolio. If you're not sure if an investment is right for you, you should take financial advice.
More on the HL SIPPHL Ready-Made Pension PlanDiscover our Wealth Shortlist
Nominate a beneficiary
Your pension is often your most valuable asset outside of your home, and the money does not disappear once you die. So, nominating a beneficiary or beneficiaries is incredibly important as it gives the pension provider/trustees an indication of where you'd like the money to go when you die. Whilst this nomination isn't legally binding, the pension provider/trustees must take it into account when considering to whom the money is given.
Make sure to revisit your instructions with every major life event e.g. marriage, divorce, or having children.
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Pension essentials
How much do I need to retire?
We take a look at three national income targets which could help you decide how much money you need to retire.
How much should I pay into my pension?
Not sure how much to pay into your pension? Here we explore what to consider when deciding how much to contribute, and why it pays to start early.
Types of pension
There are a number of different pension types in the UK. One way to categorise them is into private pensions, workplace pensions, and the State Pension.
Guides and resources
Discover the HL SIPP
Learn more about the HL Self-Invested Personal Pension and why it might be right for you.
Explore your pension options
Discover the three main options you have when you come to access your pension pot.
FAQs
SIPP basics
A SIPP is a Self-Invested Personal Pension. It works much the same way as other personal pensions. You add money to your pension as and when you like. The government pays in an extra 20% in pension tax relief. If you pay a higher rate of tax, you’ll usually be able to claim back even more via your tax return. Once it’s in your SIPP, your money can grow free from UK tax.
Traditional personal pensions tend to offer between a dozen and several hundred funds. But their charges can be hefty, particularly on older plans. Stakeholder pensions have lower charges, but tend to offer a more limited choice of funds.
The wide investment choice in SIPPs can make a significant difference to your pension. That’s because how your investments perform can have a large impact on the size of your pension pot and then your retirement. SIPPs can be low-cost if you are happy choosing your own investments without advice. The charges will vary depending on the SIPP provider and the service they provide.
If you’re UK resident under 75, you can usually add as much as you earn and receive tax relief each year. There is also an annual allowance (£60,000 for most people) which limits what you can pay in. Each contribution includes the money you put in, as well as what the government adds in tax relief.
Learn more about paying into your pension
Tax rules can change over time and the relief you receive depends on your circumstances.
Opening an HL SIPP
You can open a SIPP with us from £100 or with a Direct Debit from £25 per month.
In the HL SIPP you can invest for your retirement by choosing from:
Over 2,500 funds
UK and overseas shares
Bonds, investment trusts, and exchange-traded funds (ETFs)
Ready-made investment portfolios built by our experts
The fastest way to open a SIPP using cash from your Fund and Share Account is online. Please read the key features (including contribution checklist) and terms and conditions (including tariff of charges) first.
Log in to your Fund and Share Account.
Select the 'Cash' tab.
Select ‘Transfer Money’ in the quick links on the right of the screen.
You can also do this over the phone or by post.
You can set up a Direct Debit for your SIPP from £25 a month. Direct Debits can go into funds, FTSE 350 shares, selected investment trusts & exchange-traded funds (ETFs), or be held as cash.
To get started, log in to your account and select the ‘Monthly Savings’ tab.
Direct Debit payments will leave your bank account on the 7th of each month (or the next working day), and be invested on the 10th (or the next working day).
You can have as many personal pensions as you like. But you must make sure your total contributions to all your pensions don’t exceed your personal contribution limits and the annual allowance.
Transferring to an HL SIPP
You can transfer most types of pension to the HL SIPP:
Personal and stakeholder pensions
Pensions in drawdown
Retirement Annuity Contracts (RACs)
Self-Invested Personal Pensions
Most Additional Voluntary Contribution plans (AVCs) including Free Standing AVCs
Executive Pension Plans (EPPs)
Most paid-up occupational money purchase pensions
Old protected-rights pensions accrued from contracting out of the State Second Pension or SERPS (State Earnings Related Pension)
If you’re part of a defined-benefit (DB) pension, such as a ‘final salary’ scheme, transferring your pension to a personal plan is probably not in your best interest. These pensions not only give you a guaranteed income, they also normally offer benefits to a spouse or partner after you die. You might be able to transfer, but if the transfer value is more than £30,000, you’ll have to take advice from a regulated financial adviser and provide proof that the advice is in favour of transferring.
If your pension is transferred as cash, this means your provider will sell your pension investments, and transfer the cash amount to your HL SIPP. You will not be invested during the transfer, so you will not make losses or gains. You can buy investments once the transfer is complete. Electronic transfers usually takes 3-4 weeks, and postal 8-10 weeks, depending on your provider.
If your pension is transferred as it is (invested in the stock market), your provider will transfer each investment and any cash to your HL SIPP. If you hold an investment we do not offer, we’ll contact you during the transfer to confirm your preference. This type of transfer usually takes 6-8 weeks, but can take longer depending on your investments and provider. You stay invested during the transfer, so could make gains and losses. Usually you cannot trade until the transfer completes. Please note, we can only accept online applications of this kind for existing Self-Invested Personal Pensions or Small Self-Administered Schemes. If you hold a different pension, and are eligible to transfer your investments, please contact our helpdesk on 0117 980 9926 for a postal application.
We don’t charge you to transfer your pension, but you should check with your current provider if they’ll charge you any exit fees, or if you’ll lose any guarantees by transferring. Make sure you do this before you start your transfer.
Yes, but normally only if you’re 55 or over. You’ll need to transfer your pension first. Then, once your transfer is complete, you can apply to take money from the HL SIPP.
Guidance, help and advice
Guidance from Money Helper
If you want to make your money and pension choices clearer, get government-backed, impartial guidance from Money Helper.
Have a question?
Our UK-based helpdesk are here for you six days a week. Our friendly and knowledgeable team are ready to answer your questions no matter how big or small.
Opening hours
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Saturday: 9.30am - 12.30pm
Financial Advice from HL
Our financial advisers can work with you to:
Plan your personal budget and retirement income strategy
Make sure your investments match your goals
Give pension advice, including when and how to take them