UK Employee Guide to the Workplace Pension Lifecycle

Getting your pension right should feel doable at every stage of life. People move at different speeds and that is fine. This pension checklist uses typical life moments as a guide so you can focus on what matters now and set yourself up for later. It is written for employees in the UK and it keeps the language plain. Use it to plan conversations with your employer, your payroll team, or your provider. The aim is simple. Build confidence, reduce friction, and make your money work harder for your future.

Start where you are today and remember, a single clear action today beats a perfect plan that never happens.

Your Pension Journey

Early 20s

You may be starting your first roles either having finished higher education or already on the career ladder and with those new roles comes the workplace pension scheme. At this stage you could still be living with family or renting, managing bills, and paying down starter debts whilst you enjoy your independence. 

Focus now

• Stay enrolled in your company workplace scheme, you can always reduce your contributions if cash flow is under real pressure.

• Learn the basics inside your benefits portal, look for fund choice, fees, and how matching works.

• At this stage, once it’s set up you can leave it to accumulate over time.

Ask your employer

• What do you match and how do I maximise it?

• Where do I see my balance and how do I change contributions?

Key Tip: If your employer tells you that you have to wait 3 months to be enrolled into the workplace scheme, ask to be enrolled immediately and they'll have to enrol you automatically.

Late 20s

You’ve been in the workforce for a few years, you may be saving for a deposit or planning a move to your first home. At this stage, your income may be higher and budgets a bit tighter. This is a good time to lift your pension contributions and reduce any spread in investment to get the most out of your pension pot.

Focus now

• Increase your percentage when you get a pay rise.

• Check whether salary sacrifice is available to improve take home pay.

• Review risk level and fees for your chosen fund.

Ask your employer

• Can I set automatic increases when my pay changes?

• Do you support contributions into an existing personal pension if that suits my plan?

• Where do I download a simple annual statement and a projection?

30s

You’ve been working for some time, at this stage you may be covering rent or mortgage, you could be managing childcare costs, and career growth. Consistency wins, make your pension work in the background, understand where your investments are and work with an independent financial advisor for the best advice.

Focus now

• Lift your pension contributions towards a long term target that fits within your budget.

• Name or update your beneficiary or beneficiaries.

• Check protection benefits that sit alongside your pension such as life cover.

Ask your employer

• What happens to pension contributions during parental leave or career breaks?

• If I change roles or move to a different company, can I keep paying into the same pension?

• Do you provide simple education sessions that explain fund choice and charges?

Key tip: If your employer offers a way to keep contributing to a pension you already value when you change jobs, use it to avoid a new small pot.

40s

At this stage you are typically at your mid-career point, retirement still feels distant but your pension pot size starts to matter more now. Small tweaks and adjustments can have a big effect on your overall investment and future.

Focus now

• Check charges and performance for the last five years.

• Decide whether to keep pots separate for specific reasons such as guarantees or to bring more of your savings into one preferred account for clarity.

• Review target retirement age and investment glidepath.

Ask your employer

• Can payroll route my contributions into my chosen pension rather than opening another new pot if I switch teams or employers?

• Do you support independent guidance sessions so I can review consolidation options?

Key tip: Treat your pension contribution like one of your core bills. Protect it when other costs rise, even if you only increase by a small step. Consolidation can cut fees and admin, yet there are cases where keeping a pot separate is wise. Always check exit fees, guarantees, and protection benefits before you act.

50-55

You’ve been in your career for a long time, you’ve seen many life milestones and your horizon is closer and retirement plans feel more concrete. You may be considering early retirement, starting your own business or continuing on. You want efficiency with your pension investments without panic.

Focus now

• Consider raising your pension contributions during your peak earning years.

• Check whether your investment mix still makes sense for your target age.

• Map the role of your state pension alongside workplace and personal pots.

Ask your employer

• Do you offer mid-life financial check-ins?

• Can I keep my chosen pension if I move again before I retire?

• Can payroll support increased contributions and one-off top ups this year?

55-60

At this stage, you may be thinking about pension access rules, when and how to get to your funds. You might also be considering going to part time work, or introducing a phased retirement. Smart sequencing helps your pot last throughout your retirement.

Focus now

• Understanding how drawdown and lump sums work, and what triggers tax events.

• Check if you are on track for the income you want and adjust contributions whilst you can.

• Review your beneficiaries and expression of wish documents.

• This is the time where it's most beneficial to consult with a financial adviser

Ask your employer

• What support is available for people planning access within the next five years?

• Can I continue to contribute if I reduce hours or change contract types?

60 and Beyond

Many people today want to continue working until retirement, some choosing to stay on afterwards on a consulting basis. You might move from saving to drawing on your pension. Simplicity and certainty matter most.

Focus now

• Set a review date once or twice a year to check income, fees, and investment mix.

• Keep personal details, beneficiaries, and contact information up to date.

• Monitor how long your pension pot is expected to last under different market conditions.

Ask your employer or former employer

• Who is my contact for paperwork or verification if a provider needs employer details?

• Where can I access impartial guidance before any big decisions?

Key tip: A simple plan you can explain to a friend is more robust than a complex plan you never quite understand.

When bringing pension pots together helps and when it may not

Many people end up with several pots after moving between jobs. Bringing more of your savings into one preferred pension can make life easier and may reduce charges, although this is not always the right choice.

Potential benefits

• Clear line of sight across your savings.

• Fewer sets of fees and documents.

• Easier to set a single investment approach and a single glidepath.

Possible drawbacks

• Some older pots have valuable guarantees or protections that you could lose.

• Exit fees may apply.

• Timing matters if markets move and you are out of the market during a transfer.

What to do

• List every pot you have and note provider, policy number, charges, guarantees, and current fund.

• Ask your employer if payroll can direct new contributions into your chosen pension so you avoid creating yet another small pot when you move again.

• If in doubt, seek impartial guidance from an Independent Financial Advisor (IFA) before you consolidate.

A quick end-of-year checklist for everyone

1. Confirm your contribution rate and employer match.

2. Log in to your pension and download your statement.

3. Check fees and your investment fund are still right for your age and goals.

4. Update your beneficiaries.

5. If you have changed jobs, confirm where new contributions are going and whether you can keep paying into your preferred pension through payroll.

Key tip: Momentum matters more than perfection. Review once a year, make one improvement, and move on.

Workplace pensions are the simplest way to build long term savings. Ask whether your employer can keep sending your contributions to a pension you have already chosen when you switch roles or companies. This keeps your plan consistent and reduces the risk of small pots gathering dust. Many employers now support this type of choice because it keeps payroll simple while giving you personal control.

Learn more about how Nexum Pensions helps Employees.