Auto-enrolment has been an incredibly successful tool for getting people to save for retirement. It’s simple, automatic, and helps employees begin building their pension pot without having to think too hard about it.
But that’s also where the challenge lies. With so much of the process happening behind the scenes, it’s easy for your workplace pension to become ‘out of sight, out of mind’. And while it may not feel urgent in the short term, not engaging with your pension could cause problems later down the line.
According to My Pension Expert’s own research, over a quarter (27%) of UK adults with a workplace pension haven’t checked it in the past year, or have never checked it at all. Meanwhile, only 44% feel confident they’ll enjoy a comfortable retirement based on their current pot and saving habits.
With the cost of retirement rising, it’s never been more important to take an active role in your long-term finances.
The hidden value of staying engaged
Auto-enrolment is designed to be effortless. Yet once you’re in the scheme, it’s easy to assume your pension will take care of itself. In reality, it works best when you give it the same care and attention as any other financial investment.
By regularly checking in, you can make the most of key benefits, like employer contributions, tax relief, and the long-term growth potential of your investments. Left unchecked, though, you could be missing out on key factors. And this, in turn, could make it more difficult to achieve your future financial goals.
Take market conditions, for example. Inflation rose to a 40-year high of 11.1% in October 2022 and has remained above the Bank of England’s 2% target ever since. That means your savings need to grow faster just to keep pace with everyday living costs.
More recently, global trade tensions have triggered market volatility. While pensions are built to ride out short-term ups and downs, these events still affect performance and highlight the importance of reviewing your pension strategy.
It’s not about reacting to headlines. But regular check-ins give you the chance to understand how your money is working, whether your contributions are on track, and if your investments are aligned with your goals. That knowledge can be empowering – and help you avoid making decisions based on impulse or guesswork.
Simple steps to strengthen your savings
The good news? Improving your pension engagement doesn’t mean overhauling your whole financial plan. A few small steps can go a long way.
Start with your contributions. Some workplace pension schemes will match any additional contributions you make. It’s worth checking how your scheme works and whether there’s an opportunity to boost your savings through matched contributions. You might also find that you have the capacity to contribute more than you currently do, which could make a big difference to your retirement fund over time.
Next, aim to review your pension regularly. Even a quick look at your balance, investment performance, and retirement strategy can help you feel more in control.
If you’re unsure where to start, support is available. Seeking independent financial advice can provide tailored guidance, helping you understand your options and make decisions that suit your circumstances.
Support that makes a difference
You don’t need to have all the answers straight away – but understanding your workplace pension, and checking in with it regularly, can go a long way toward building the future you want.
If you’re unsure where to start, help is available. Whether it’s asking your employer for more information, using online tools, or speaking to an independent financial adviser, such as our expert team at My Pension Expert, there’s support to guide you through the process.
Because when you feel informed about your workplace pension and financial plan overall, you feel more in control, and that confidence can make all the difference in shaping a retirement that works for you.
