Four tips to get your pension in order in the New Year – and one ‘last chance’ opportunity

A pensions expert has shared tips for Britons to “take stock” of their in 2025 and make the most of a “last chance” opportunity to boost their pots.

A report by revealed that nearly two-thirds of Britons (58%), or over 32 million people, are stressed about their financial future.

Among those aged 35 to 44, 71% feel pressured to balance family expenses, mortgages, and retirement savings.

However, Robert Cochran, a retirement expert at Scottish Widows, has said that with some “simple yet effective” planning tips, people can take control of their finances and ensure they’re on track for a “comfortable” retirement.

Mr Cochran has shared four key steps to help people start the new year on the right track.

Review your current finances

Mr Cochran said: “First, take stock of where you stand. This means understanding your current savings, investments, and debts. Track down all your pension pots.”

Many people have multiple pensions from different employers, which can be challenging to manage.

The government provides a free tool, the , which only requires a national insurance number and the names of former employers to help locate any lost pension pots.

Mr Cochran said: “Knowing exactly how much you’ve saved will provide a clear picture of your financial status and whether you’re on track to meet your retirement goals.”

Consolidate pension pots

If it’s beneficial, Mr Cochran suggested that people consolidate their pension pots to “reduce the admin” and help make managing finances “simpler”.

To do this, Mr Cochran said people should first locate their pots. He said: “Use the Pensions Tracing Service to find any lost pots. With the PPI estimating that 27 million pension pots will be lost by 2035, it’s crucial to gather all your assets.”

Savers should then choose where to consolidate. Mr Cochran explained: “Decide whether to move your pensions to your current provider or a new one. Consider factors like exit fees, tax implications, and the benefits offered by your current pots.

“Speaking to a financial adviser can help ensure you make the best decision for your future.”

He added: “If you have worked abroad, transferring these pots can be complex. Make sure your overseas pot is within a Qualified Recognised Overseas Pension Scheme (QROPS) to avoid hefty taxes and charges. Not all UK providers accept overseas transfers, so research thoroughly and consult an adviser if necessary.”

Increase pension contributions

According to Mr Cochran, one “simple yet effective” way to boost savings is by increasing pension contributions by 1%.

He explained: “This small yet manageable step can significantly impact your pension pot over time and lead you to a more comfortable and financially secure retirement.”

Additionally, Mr Cochran noted: “There is a last chance opportunity to make up for any missing years of National Insurance (NI) contributions going all the way back to 2006 – making these contributions is how you qualify for .

“From April 2025 onwards – you’ll only be able to go back six years – so get your in order using the free government checker.”

People can access the tool through the website or the .

It should be noted that paying voluntary contributions will not always increase . Still, everyone can use the service to check whether they could be better off in retirement before making any payments.

Regular financial check-ins

Regular check-ins on your financial position are “vital”, Mr Cochran warned.

He said: “Our Pension Mirror tool allows you to compare your pension savings with others your age, providing valuable insights and encouraging better pension knowledge.”

Savers can also use pension forecasting calculators to determine how much they could accumulate by retirement and assess if they need to increase their contributions to meet their goals.

There are various pension calculators available, such as Pension Bee and , where people can see a projection of their retirement funds to help them plan.

Mr Cochran said: “By following these tips, you can take control of your financial future, ensuring you’re on the right path to secure a comfortable retirement. Remember, the steps you take today will shape your financial health tomorrow.”