How to get your pension back on track

Most people don’t realise they’re off track for retirement until they see the numbers clearly.

By that point, the gap can feel uncomfortable. In some cases, overwhelming. However, being off track doesn’t mean your plan has failed. You may still have time to improve it, often more than you think.

The challenge isn’t doing everything at once. It’s knowing which changes will make the biggest difference, and acting early enough for those changes to take effect.

Two people with similar pension pots today can end up in very different positions at retirement, simply based on the decisions they make from here.

The good news is that improving your position doesn’t require a complete overhaul. In many cases, a few focused adjustments can have a significant impact, although some situations may require larger or more difficult changes.

If you’re unsure where to start, working with a Chartered Financial Planner can help you prioritise the changes that are likely to make the biggest difference.

Option 1. Track down lost pensions: a quick potential win

Before making any changes, it’s worth making sure you’re working with everything you already have.

Over a lifetime, most people build up multiple pension pots. The average UK worker has around 11 jobs, and with automatic enrolment, each role can create a new scheme. As a result, there are now millions of lost pensions in the UK, collectively worth tens of billions of pounds.

These pensions aren’t usually “lost” in the true sense. More often, they’re sitting with old providers, invested in default funds, or simply no longer being reviewed.

That creates two challenges. You might underestimate how much you’ve saved, and those pensions may not be working as efficiently as they could.

Bringing pensions together, where appropriate, can give you a clearer view of your overall position, reduce unnecessary charges, and make your investments easier to manage. Be mindful however that consolidation is not always suitable, and should not be done without checking for protected benefits or without advice.

How to find lost pensions

If you think you may have missing pensions, you can start by:

• Contacting previous employers.
• Checking old paperwork or emails.
• Using the government’s Pension Tracing Service.

Even finding one forgotten pot can make a meaningful difference. In some cases, rediscovering existing savings can improve your position without needing to increase contributions or take on additional risk.

Option 2. Increasing contributions: the most direct lever

Once you have a clear view of your existing pensions, contributions are usually the most immediate and controllable way to improve your outcome.

Unlike investment performance, which depends on market conditions, contributions are something you can adjust directly. That makes them one of the most reliable levers available.

Even modest increases can have a meaningful long-term impact due to compounding, where each contribution not only adds to your pension but generates its own returns. The earlier those contributions are made, the more time they have to grow.

A relatively small increase in your 30s or 40s can build into a significant difference by retirement, without requiring drastic changes later. If you delay, you’ll often need much larger contributions over a shorter period to achieve the same result.

In practice, this doesn’t have to mean a sudden or uncomfortable jump in contributions. Many people increase their pension gradually, for example by directing part of a pay rise or bonus into their pension rather than adjusting their day-to-day spending.

The table below illustrates what it may take to add around £125,000 to your pension, assuming 5% annual investment growth after charges. This could provide roughly £5,000 per year of retirement income, based on a 4% withdrawal rate. However, this is an illustration; this rate is not guaranteed and may not be suitable for all. The value of investments and the income from them can fall as well as rise, and you may get back less than you put in.

Seen in this context, contributions are not just about saving more, but about making small, consistent adjustments that build over time.

The key point is simple. Acting earlier reduces the pressure on future contributions and allows time to do most of the work.

Option 3. Delay your retirement age: using time more effectively

Beyond contributions, timing is one of the most powerful and often overlooked levers available.

When you retire can be just as important as the years you’ve spent building your pension pot.

Working even slightly longer gives your pension more time to grow, while reducing the number of years it needs to support you. Together, this can significantly improve the level of income your savings can provide.

The table below illustrates how delaying retirement affects income from the same £200,000 pension. The pattern is consistent. Small delays can lead to stronger outcomes (outcomes assume specific assumptions, actual income will vary with markets, charges, inflation, tax).

Importantly, this doesn’t have to mean working full-time for longer followed by a hard stop. Many people now transition gradually, moving into part-time or flexible roles as they approach retirement.

This kind of phased retirement can provide continued income, reduce the need to draw on your pension early, and make the shift into retirement feel more manageable.

In practice, adjusting timing, even by a small amount and potentially alongside reduced hours, can be one of the most efficient ways to improve retirement outcomes.

Option 4. Review your investment strategy: the long-term driver

Once contributions and timing are in place, how your pension is invested becomes the key driver of long-term outcomes.

Small differences in annual returns can compound into large differences over time. Over 20 to 30 years, even a one or two percentage point increase can significantly change the value of your pension.

The table below illustrates this effect, showing how a £100,000 pension could grow over 25 years at different return levels.

The gap between outcomes is substantial, despite relatively modest differences in annual performance. However, higher returns usually come with greater risk of short-term volatility. Investment returns are not guaranteed; the value of investments rise and fall and you could get back less than you put in.

The objective isn’t simply to maximise returns, but to adopt an investment approach that aligns with your time horizon and tolerance for risk.

If you have longer until retirement, taking on more investment risk may be appropriate to support growth. As you get closer to retirement, the focus often shifts towards preserving value and reducing volatility.

Getting this balance right is one of the most important factors in shaping your eventual retirement outcome.

Option 5. Get expert retirement planning: bringing it all together

Understanding the different levers is one thing. Bringing them together into a clear, workable plan is another.

Each of the steps above can improve your position on its own. But the real value comes from how they interact. The right balance between contributions, investment strategy and retirement timing will depend on your individual circumstances, goals and tolerance for risk.

This is where expert advice can make a meaningful difference.

A Chartered Financial Planner can help you build a structured retirement plan, model different scenarios, and identify which changes are likely to have the greatest impact. They can also help you avoid common pitfalls, such as taking too much or too little investment risk, or drawing from your pension in a way that isn’t tax efficient.

Just as importantly, a plan provides clarity. Instead of guessing whether you’re on track, you can understand where you stand today, what needs to change, and how those changes are expected to improve your outcome over time.

For many people, the value is not just in better decisions, but in the confidence that those decisions are aligned with a clear long-term plan.

Remember, being off track isn’t a fixed outcome. It’s a starting point.

Improving your position is rarely about a single change. It’s about understanding which levers will have the greatest impact and acting early enough for those changes to take effect. The earlier you act, the more flexibility you’ll retain. Leave it too late, and the same changes often require significantly more effort to achieve a similar result.