Individuals who achieve the retirement they want without carefully planning it are few and far between, so why leave it to chance? A fulfilling retirement rarely happens by accident, it’s the result of clear planning and thoughtful decisions made along the way.
With Pension Awareness Week (15–19 September), now is the perfect reminder to revisit your pensions and check whether your wealth plan is truly on track.
Why Pensions Deserve Your Attention
It’s all too easy to push pensions down the priority list. Yet with longer life expectancy, rising living costs, and changes to pension tax rules on the horizon, reviewing your pensions should be a priority.
And the evidence is clear: many people don’t have the clarity they need. Recent research shows, that a staggering:
- 1 in 5 don’t know what type of pension they hold.
- More than half (55%) don’t know where their pension is invested.
- Nearly 70% have multiple pension pots, yet one in five don’t know how many they have, and more than a third aren’t sure how to access them.
- 57% are unaware that the government tops up pension contributions.
- Only 7% know that tax relief starts at 20%.
While some are taking positive steps, a quarter of people have increased their contributions, the majority still lack confidence and knowledge about one of their most important financial assets.
This uncertainty can be even more costly. Without proper planning and guidance, pensions risk being under-utilised in retirement planning, tax efficiency, and intergenerational wealth transfer.
How Much Do You Really Need?
National benchmarks such as the Pensions and Lifetime Savings Association (PLSA) Retirement Living Standards provide a broad guide to the income levels required for a “minimum,” “moderate,” or “comfortable” lifestyle in retirement.
However, for individuals and families with significant wealth, these benchmarks are often too simplistic. They don’t capture the nuances of maintaining your preferred lifestyle, supporting loved ones, or structuring wealth efficiently for tax and succession planning.
That’s why at Wells Gibson, we use tailored cashflow modelling (through Voyant) to explore your unique circumstances, from the life you want to live today, to the legacy you wish to leave tomorrow. This personalised approach gives far greater clarity than any one-size-fits-all benchmark.
Pensions and Inheritance – Rules Are Changing
Along with providing for retirement, pensions have long been a popular estate planning tool. Because most defined contribution pensions sit outside your estate for Inheritance Tax (IHT) purposes, they’ve offered a way to pass on wealth efficiently to the next generation.
But from April 2027, unused pensions are expected to be brought into scope for IHT. This change will significantly affect those who had planned to preserve their pensions for family inheritance. It’s a timely reminder that pension rules do evolve, and strategies that worked even a few years ago may no longer be appropriate.
Many families also face a different challenge: multiple pension pots from different stages of their careers or businesses. Each comes with its own charges, investment strategies, and paperwork, making it difficult to see the bigger picture.
Bringing pensions together isn’t right for everyone, but it can:
- Provide a clearer view of your overall wealth.
- Allow for a joined-up investment philosophy, aligned with your long-term objectives.
- Reduce costs where older pensions carry higher charges.
- Simplify both retirement income planning and estate transfer.
The decision depends on your circumstances, the benefits attached to existing pensions, and how pensions fit within your wider wealth strategy.
Are Your Pensions Truly Working For You?
Pension Awareness Week is a valuable reminder to pause and reflect:
- Do you have full clarity over your pensions and how they fit into your overall wealth
- Are your pensions invested in a way that reflects both your appetite for risk and your family’s long-term goals?
- Have you considered how changing pension tax rules might affect your retirement and inheritance planning?
- Could consolidating your pensions bring greater simplicity, efficiency, and control?
You don’t need all the answers before starting the conversation. At Wells Gibson, we bring clarity to your pensions and integrate them with your wider wealth — ensuring they support your lifestyle today, your retirement security tomorrow, and the legacy you wish to leave with confidence.
If you’d like to review your pensions and ensure they’re fit for purpose, we’d be delighted to have a conversation with you.
Important Notes
This article is for general information and education only and does not constitute personal advice or a recommendation to buy or sell any investment.
Pension rules, tax legislation and allowances are subject to change, and the effect of these changes will depend on your individual circumstances.
Decisions about consolidating pensions, adjusting contributions, or changing investments should always be considered in the context of your personal situation and long-term objectives.
Investment values and the income from them can fall as well as rise, and you may get back less than you invest.
Past performance is not a reliable guide to future returns..
Tax treatment depends on individual circumstances and may change in the future.
Any references to specific products, platforms or providers are included solely for educational context. They do not represent due diligence, an endorsement, or a recommendation by Wells Gibson under any circumstances.
If you are unsure about the suitability of an investment for your circumstances, please seek regulated financial advice.
