With people living longer than ever, it’s crucial to ensure your pension is fit enough to last through your retirement.

Recent research by Vanguard found that only 40% to 50% of employees aged 61 to 65 are financially ready for this next chapter¹. This figure is alarming, given that you’d expect people so close to retirement to be much better prepared.

The good news is that the earlier you start planning, the more options and security you’ll have down the line. By taking proactive steps now, you can better position yourself to avoid similar challenges.

In this article, we offer seven ways to help strengthen your pension, so you can look to the future with confidence.

1. Know what you’ve got

The first step is to understand your current pension savings – how much you’ve built up so far and how much you’re contributing each month. Gather all your pension statements, log in to your accounts and review the contributions from both you and your employer. This will give you a clear starting point and help you assess where you stand.

2. Track down lost pensions

If you’ve had several jobs during your career, you might have lost track of your previous pensions. According to the Pensions Policy Institute, there are 3.3 million lost pension pots in the UK. The average size is £9,470, rising to £13,620 among people aged 55 to 74². Think about the extra holidays or the peace of mind this could bring, knowing you have a bit more cushion in your retirement fund. The government provides a free pension tracing service to help you locate your lost accounts.

3. Set a goal

Setting a goal gives you something to aim for. In a previous article, we explored how much you might need to save for retirement, based on different standards of living. For example, if you want a ‘moderate’ standard of living in retirement, you’d need to save around £500,000.

Once you’ve set your goal, you can compare it with your current savings and identify any gaps. Use our pension calculator to estimate how much you need to save each month to meet your target. This will make it easier to build a plan that fits your ambitions and circumstances. Picture yourself enjoying a relaxed retirement, perhaps travelling more or spending quality time with family, and use that vision to motivate you to stay on track.

4. Save more if you can

Increasing your monthly pension contributions, even by a small amount, can make a significant difference over time. This is because of the power of compounding, when you earn returns on the money you invest as well as on the returns themselves.

Additionally, the government tops up your personal pension contributions with tax relief, adding extra value to your savings. For every £80 you contribute, the government adds £20, boosting your total contribution to £100. If you’re a higher- or additional-rate taxpayer, you can claim back an extra £20 or £25, respectively, via your annual tax return.

5. Maximise employer contributions

If you’re employed, taking advantage of your employer’s pension contributions could make a huge difference to your retirement savings. Some employers will match or even exceed your contributions up to a certain percentage of your salary. For example, with auto-enrolment, many employers pay in 3% of your salary and you pay in 5%³, but if you increase your contributions to, say, 7% they might also pay in 7%. On a salary of £50,000, this could result in an extra £3,000 a year going into your pension.

Find out exactly how much your employer will contribute by speaking to your HR department. Every little bit helps, and maximising these contributions can significantly boost your pension, giving you more flexibility to enjoy your retirement.

6. Bring your pensions together

Bringing all your pensions together into one account cuts down on admin and provides a clearer view of your savings. This makes it easier to track your progress and stay motivated. If you consolidate your pensions with a lower-cost provider you’ll also save on fees, helping you reach your goal more quickly. However, not all pensions are suitable for transferring, especially defined benefit, or ‘final salary’, pensions and those that offer valuable guarantees. Find out what to know before starting a transfer and how to transfer your pension to Vanguard.

7. Choose a pension provider that suits you

Deciding where to invest your pension savings can feel overwhelming, so it’s important to choose a pension provider that offers the support you need. 

At Vanguard, we offer several options to help you get started and stay on track. You can build your own portfolio using our wide range of low-cost individual funds. Or you can keep things simple by opting for one of our Target Retirement Funds. These are ready-made portfolios that automatically adjust your investments as you get closer to retirement. 

If you prefer more of a helping hand, our managed service will select investments for you based on your attitude to risk, so you don’t need to worry about choosing the right fund.

By following these steps, you can take control of your financial future and ensure your pension is robust enough to last. Remember, every small action today can lead to a more secure tomorrow.
 

¹ The Vanguard Retirement Outlook: Assessing the retirement readiness of UK baby boomers. Vanguard, June 2025.

² Lost Pensions 2024. Pensions Policy Institute.

³ The auto-enrolment minimum contribution for the tax year 2025-26 is 8% of your salary between £6,420 and £50,270. The 8% comprises 5% from you (including tax relief) and 3% from your employer.
 

Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Eligibility to invest in a Vanguard Personal Pension depends on your individual circumstances. Please be aware that pension and tax rules may change in the future and the value of investments can go down as well as up, so you might get back less than you invested. You cannot usually access your pension savings or make any withdrawals until the age of 55, rising to the age of 57 in 2028.

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