Get the most out of your pension

Keep an eye on how your pensions and other savings are doing regularly. 

Remember that you are saving for the long term, for 40 years or more. You'll find that the values can go up and down from day-to-day but over the longer term the aim is for them to grow in value, although this is not guaranteed.

You'll be getting annual benefit statements from your pension provider(s) so make sure you have time to read them and understand them each time they arrive. Make sure you have these filed away safely.

You may also have online accounts for your pensions which allow you to see the value and make some changes. For your Legal & General pension you can register for Manage Your Account to manage your pension savings online.

Defined contribution (DC) plan statement

You should receive an annual statement which estimates the monthly retirement income your pension might generate if you were to convert it into a guaranteed income for life (also known as an annuity). But there are other options to take your money from this pot.

Defined benefit (DB) scheme statement

If you're not receiving benefit statements from your DB scheme you can request one from the administrator.

The statement shows how much pension you might get. It might assume that you take your tax-free cash lump sum.

If retirement is a long way off, having a rough idea about what different lifestyles in retirement could cost is probably all you need. This will help you understand if you are on track with your savings.

The Pensions and Lifetime Savings Association (PLSA) have created the 'Retirement Living Standards' to give you practical guidance, helping you work out what your retirement might cost based on three lifestyles: minimum, moderate and comfortable. These lifestyles show you what your living costs might be across six key spending areas.

• Find out more on the Retirement Living Standards website.

If you're closer to retirement, it's vital to take time to assess what you'll have to work with and what your expenses might be to help you create your plan or make changes if you need to.

• Find out more about taking stock of your money.

You'll need to compare what you have saved so far with what you need in retirement.

• Use our retirement planning tool to experiment with the income you could achieve in retirement.

If you have a gap you may want to consider paying in more or making other savings.

Defined contribution (DC) plan

If you have a defined contribution workplace pension, you should be able to increase contributions to the pension plan you are currently contributing to, although sometimes your employer may limit when you can do this. Contact your employer to find out more. 

You may be able to pay more into pension plans you had with previous employers. Speak to your pension provider to find out more.

Defined benefit (DB) scheme

If you have a defined benefit pension scheme, you will already know what retirement income you will receive and making additional contributions may not make any difference. So you may want to save in other ways.

Even if you can only afford to save a little bit more at the moment, any extra savings will help give you the best chance of meeting your retirement goals. 

You might also want to change your selected retirement age.

Your retirement age for the pension plan is automatically set by your employer.

Defined contribution (DC) plan

If you have a defined contribution workplace pension, you can usually change your retirement age at any time. Remember, you don't need to take all your benefits at that time.

You can usually update your retirement age for your Legal & General plan through our online service Manage Your Account.

Defined benefit (DB) scheme

If you have any retirement income benefits from any defined benefit (DB) schemes your benefits will become payable at the scheme's retirement age. You may be able to take your benefits sooner than that age but it may reduce the income you receive. You may also be able to take your benefits later, which may increase the benefits you receive.

If you have a workplace pension with your employer, or previous employers, which is not a defined benefit scheme (otherwise known as final salary or career average schemes) you may be able to choose where your pension is invested.

In a defined benefit scheme, the trustees will choose how the fund is invested.

How your defined contribution pension pot is invested can make a big difference both financially (so your pot hopefully grows over time) and socially (that it's invested in a way that meets your values like tackling climate change or social inequality).

So it's important to make sure you're invested in a way that reflects your circumstances and goals.

Remember that you are saving for the long term, for potentially 40 years or more. You'll find that the values can go up and down from day-to-day but over the longer term the aim is for them to grow in value, although this is not guaranteed.

Check where your pension pots are invested and whether you want to make any changes. Your pension provider(s) will be able to give you more information on what is available to you.

If you are new to investing, we have a guide to some of the basics like: what an investment fund is and the types of asset.

We also have a guide to risk and reward.

If you want help with your investment choices, you should speak to a financial adviser. You can find one in your local area at unbiased.co.uk. Financial advisers usually charge a fee for their services, but it will be personal to you and your circumstances.

If you've got pension pots with previous employers, you can normally transfer them all into one plan. Keeping your pension savings in one place could make them easier to manage, cost you less and give you greater choice, but it might not be right for everyone. Check with your employer if you can do this.

If you've built up any benefits in a defined benefit scheme, it is usually best to leave these where they are. To ensure that people don't lose out on these valuable pensions by mistake, the government requires anyone who wants to transfer a defined benefit pot of more than £30,000 to take financial advice.

Find out more about getting all your pensions into one place.