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Experts warn everyone with a pension there are three main things to get right to "give yourself the best chance of a comfortable retirement”

ended 16. January 2026

EXPERTS have warned everyone with a pension that there are three main things to get right to "give yourself the best chance of a comfortable retirement”.

This comes as analysis by the Department for Work and Pensions (DWP) last year revealed that 43% of working-age adults – equivalent to 14.6 million people – are undersaving for retirement. 

And it’s not just low earners feeling the pinch. Even among the top earners bringing in over £67,000 a year, nearly 1 in 2 (48%) are projected to fall short of what they’ll need later in life.

Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, said there were three things to get right with pensions.

He added: "Don't ignore them, it's your future. You've got three main levers to consider. How much do you need to put in, how aggressive the investments are and when you take retirement. 

"Get those three right and you give yourself the best chance of a comfortable retirement. If you don't understand the statements or if it feels like it's written in a different language, seek help, either from your scheme or from a financial advisor."

Scott Gallacher, Director at Leicester-based Rowley Turton, said you need to sort out your pension in 2026.

He continued: "With personal allowances and income tax bands frozen, pension contributions are more important than ever in 2026, particularly for keeping people out of higher-rate tax or, worse still, the 60% tax trap caused by the tapering of the personal allowance above £100,000. 

“For many, pensions remain one of the most effective ways of reducing tax today while building long-term financial security. As most people are basic-rate taxpayers in retirement, this creates a significant tax saving over a lifetime. Ultimately, it’s about living within your means now so you don’t face a sharp and uncomfortable drop in your standard of living when you retire.”

4 responses from the Newspage community

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Scott GallacherVerified
Director at Rowley Turton
With personal allowances and income tax bands frozen, pension contributions are more important than ever in 2026, particularly for keeping people out of higher-rate tax or, worse still, the 60% tax trap caused by the tapering of the personal allowance above £100,000. For many, pensions remain one of the most effective ways of reducing tax today while building long-term financial security. As most people are basic-rate taxpayers in retirement, this creates a significant tax saving over a lifetime. Ultimately, it’s about living within your means now so you don’t face a sharp and uncomfortable drop in your standard of living when you retire.
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Editor
Rob MansfieldVerified
Independent Financial Advisor at Rootes Wealth Management
Don't ignore them, it's your future. You've got three main levers to consider. How much do you need to put in, how aggressive the investments are and when you take retirement. Get those three right and you give yourself the best chance of a comfortable retirement. If you don't understand the statements or if it feels like it's written in a different language, seek help, either from your scheme or from a financial advisor.
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Samuel Mather-HolgateVerified
Managing Director & IFA at Mather and Murray Financial
The rules and allowances around pensions seem to be getting tighter and tighter so make the most of them whilst you can. Stashing cash in your pension is still super sensible, with relief at your highest tax rate on the way in and tax free growth on all of the money whilst it remains invested. Starting early is the biggest tip – the longer your money is invested and more you can contribute will mean you need to work for less time and retire with more money. Have a broad array of investments and don't tinker with it too often.
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Kundan BhaduriVerified
Entrepreneur, Investor and Landlord at The Kushman Group
My advice to staff and colleagues is always to stop treating your pension like a locked box and start treating it like a tax liability that needs aggressive management. You must review your expression of wish forms immediately because the old logic of dying with a full pot to pass on tax free is being dismantled before our eyes. For those approaching the lifetime allowance danger zones or fearful of the sixty percent tax trap it might be time to divert capital into ISAs or tangible assets where the government cannot change the rules quite so easily.

We are witnessing a fundamental shift where the social contract of saving for the future is being rewritten by a government desperate for capital. The looming inheritance tax raid in 2027 effectively transforms pensions from the ultimate wealth preservation vehicle into a potential double taxation trap for your heirs.