Eight questions worth asking about your workplace pension

In part one of this series I wrote about the habit that led to me retiring at 50: reading the paperwork. In part two I told you what I found when I did, a pension sitting in an assured fund, returning roughly what I put in, going nowhere.

This final part is the practical one. The questions I'd ask now, looking back with thirty years of hindsight, if I were starting from scratch. Whether you're in your thirties, your fifties, or already drawing your pension, most of these are worth checking.

1. What type of pension do you have?

This matters more than most people realise. A defined benefit (final salary) scheme promises a specific income in retirement, usually calculated from your salary and years of service, a diminishing rarity in the private sector, though still common in public sector roles. A defined contribution scheme builds up a pot that's invested on your behalf, and what you get out depends on what went in and how the investments performed. The questions you ask, and the decisions available to you, are quite different for each.

2. What's your projected retirement income?

Your annual statement should include a projection. Read it. Understand what assumptions it's based on, the assumed retirement age, the assumed rate of investment growth. Ask what the figure looks like if you retire five years earlier or later. For defined contribution schemes, note that the projected figure is often the pot value rather than an annual income. These are very different numbers, and converting one to the other requires a separate conversation about drawdown rates or annuities.

3. Is your employer paying what they should be?

Since 2019, auto-enrolment rules in the UK require a minimum total contribution of 8% of qualifying earnings, at least 3% from your employer, at least 5% from you. Many employers pay considerably more. Some will match higher voluntary contributions up to a certain level, which is essentially free money left on the table if you don't take it. Check your payslips. Check your pension statements. Make sure the numbers tally.

4. How is your pot actually invested?

This is the one that matters most, and the one I'd most want you to check. If you've never actively chosen a fund, your contributions are almost certainly sitting in your scheme's default. Find out what that default is and what it's designed to do. If the answer is "preserve your capital," read part two of this series before you do anything else.

5. What are the charges?

Charges on defined contribution pensions vary considerably. Auto-enrolment default funds are capped at 0.75% annual management charge, but charges across other available funds can be higher. Over thirty years, the compounding difference between 0.3% and 1.0% in annual charges is substantial. We're talking tens of thousands of pounds on a typical pension pot. It's worth knowing what you're paying, and whether cheaper options are available within your scheme.

6. Do you have old pensions from previous employers?

The average person in the UK has around eleven jobs over their career. That's potentially eleven different pension pots, in various states of currency and contact detail accuracy. Finding them, understanding what they're worth, and making an informed decision about whether to consolidate them (carefully, with proper advice, since not all transfers are straightforward) is genuinely worthwhile. The government's Pension Tracing Service is free and can help locate schemes you've lost touch with.

7. Would paying more in trigger higher employer contributions?

Many workplace schemes will increase their employer contributions if you increase your own above the minimum. This varies enormously by employer, and it's often not clearly communicated. It's worth a direct question to your HR or pensions team: "If I increase my contributions, do you match any of the increase?" The answer occasionally surprises people.

8. When can you access it, and what are your options?

The minimum pension access age in the UK is currently 57 (rising from 55 in 2028). Beyond that, the options vary significantly between scheme types, defined benefit schemes pay a regular income; defined contribution schemes offer drawdown, annuity, or lump sum options with different tax implications for each. The sooner you understand what your options are, the better placed you'll be to plan around them. MoneyHelper is an excellent free starting point for this kind of research.

A final thought

None of this requires expertise. It requires curiosity and about two hours a year. I know that because I've been doing it that way for over three decades, through a career that started with paper folding and ended at 50 with a pension that had genuinely grown.

If you've read this far, you're already further along than most. Go and find that statement.