Let's Talk Pensions

For many people, pensions are notoriously difficult to understand and as a result, rarely looked at. At most, the majority will have a quick glance at their pension statement that arrives on the doormat each year and then do little more than add it to their filing pile. Once they've had a quick glance at the balance, of course! Sadly, many people fail to understand that what they are looking at not only has the potential to be one of the most valuable assets that they own, but also the key to a happy and well-funded retirement. So surely, it's time to pay more attention and start making your pensions work harder for you?

Can You Tell Me Where Your Pensions Are?

An estimated £31.1 billion is sitting unclaimed in approximately 3.3 million lost pension pots across the UK (Pensions Policy Institute, Lost Pensions research). This is a staggeringly large figure that highlights just how many people fail to properly manage and oversee their plans for retirement.

If you think that you may be one of these people with a lost pension, it may be easier than you think to track down a lost policy and bring it back into your financial plans. To assist with this task, the government has put together a service that will help you to contact pension providers who will then be able to tell you if you hold any policies with them. This service is called the Pension Tracing Service and can be accessed via the gov.uk website.

What Are My Pensions Doing?

If you are yet to retire, then your aim will usually be to grow your pension pots as much as possible ready for the day that you wish to draw on them. It is important this is done taking the correct level of risk — a level you are comfortable with.

Unfortunately, and somewhat unsurprisingly, the majority of people do not know:

• Where their pension money is invested
• How it is performing
• What level of risk they are currently taking

This is what forms part of the problem! Individuals need to realise that a lack of understanding when managing your pension pots can make you your own worst enemy. With increased knowledge comes the real potential to improve your situation for the future.

Important Changes Coming in April 2027

From 6 April 2027, the treatment of pensions for inheritance tax purposes is changing significantly. Unused pension funds will now be included in your taxable estate for inheritance tax, which could affect your estate planning and the legacy you leave to your family.

This is another good reason to review your pensions now, while there's still time to assess the impact and plan accordingly.

Regular Review is Key

So ultimately, my advice would be to review your pensions on a regular basis. If this feels like something that you can't handle yourself, then seek the advice of a qualified financial adviser who can assist. After all, in years to come, it may well be one of the best financial decisions you have ever made.

If reviewing your pension plans with a financial adviser is something that you think would be of benefit to you, please feel free to contact us and we can discuss the options available to you based on your own personal requirements.

Figures quoted are correct as at September 2026. Tax rules, allowances and thresholds can change.

Important: This article is for information only and does not constitute financial or pension advice. Pension rules and tax treatment can be complex and individual circumstances vary significantly. From April 2027, pensions will be treated differently for inheritance tax purposes. Before making pension decisions, please seek advice from a qualified financial adviser.

For a confidential discussion about your pensions, please contact us.