‘I’m a pensions expert – here are 6 ways to boost your retirement pot in 2026’ | Personal Finance | Finance
Craig Rickman shared 6 useful tips (Image: Interactive Investor)
Millions of people will start the New Year thinking about their finances, and pension experts say now is the ideal time to take simple steps that can make a big difference to retirement savings. With 2026 approaching, an expert has outlined six practical ways Brits can increase their pension wealth, reduce tax and avoid missing out on money they’re entitled to.
Craig Rickman, a personal finance expert at Interactive Investor, says reviewing what you already have is one of the most important financial tasks people can do. He explained that many savers don’t realise how far off track they may be until they check old paperwork, run the numbers and look at their State Pension record.
Below are six steps he says could help people build a bigger retirement pot next year.
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Reviewing what you already have is one of the most important financial tasks people can do (Image: Getty)
1. Review your pensions and check whether you’re on track for the retirement income you want
Mr Rickman said: “Making some time to review your pension and get your retirement savings on track could be the best thing you do for your finances in 2026.
“Make a start by digging out your paperwork and checking how much you have saved. Don’t forget to add in any older schemes you’re no longer contributing to.”
The expert added: “Then find an online pension calculator which can estimate what pension wealth and income you might achieve by retirement. Bear in mind, the figures aren’t guaranteed and the pot you accrue for later life depends on investment performance and your future contributions.
“It’s also worth getting a state pension forecast to see when you’ll receive it and identify if you have any gaps in your national insurance (NI) record.”
Mr Rickman continued: “You need 35 years’ qualifying national insurance contributions (NIC) or credits to receive the full state pension and can plug any gaps by paying voluntary NICs, for the past six tax years.”
He added that checking this early gives people more time to fix problems. He said: “Once you know roughly where you stand, it’s much easier to make decisions about your retirement plans.”
Reviewing your pension should be at the top of the list (Image: Getty)
2. Use salary sacrifice while the current rules still apply to make your pension contributions more tax-efficient
Mr Rickman explained that many workers still have four tax years to take advantage of the existing rules.
He said: “Salary sacrifice is one of the most tax-efficient ways to pay into a pension. Although the Budget announced a £2,000 cap on such schemes, the changes won’t come into force until April 2029. The delay means workers still have four tax years to make the most of the current rules.”
Mr Rickman added: “Joining a salary sacrifice scheme can make pension saving more affordable as you avoid national insurance (NI) on your pension contributions.”
3. Increase contributions now to reduce the impact of frozen tax bands and rising fiscal drag
Mr Rickman said: “Frozen income tax thresholds will remain in place until 2031, dragging more of us into paying higher rates over time.
“And upping your pension contributions can be a great way to offset the impact of this stealth tax.”
He said even small increases can have “an outsized impact” due to compounding.
4. Track down any lost or forgotten pension pots that could boost your retirement savings
Millions of pounds are sitting in old accounts people have forgotten about. Mr Rickman explained: “Throughout the country, over three million lost pension pots are waiting to be reunited with their owners, with an estimated £31 billion locked away.”
He said the Government’s pension tracing service can help people find old workplace schemes.
Brits should check whether they’re owed extra pension tax relief from previous years (Image: Getty)
5. Check whether you’re owed extra pension tax relief from previous years, and claim it back from HMRC
Mr Rickman said: “Thousands of higher-rate taxpayers are missing out on valuable pension tax relief, which isn’t given automatically on all contributions.”
The expert added: “The problem arises because contributions into a SIPP or a relief at source workplace pension only attract 20 per cent tax relief – the rest needs to be claimed through self-assessment or by writing to HMRC.
“If you think you might be due a tax rebate, you can contact HMRC by letter or by filling in a tax return. You can claim missing tax relief for up to three previous tax years and you could receive a cheque in the post worth thousands.”
6. Consider whether consolidating multiple pension pots could make your retirement planning easier
Mr Rickman said combining pots can help people keep better control. He explained: “When we move jobs during our career, we often collect small pension pots and end up with a mountain of pension paperwork.
“Although combining those pots won’t be right for everyone, it’s worth considering, especially as you approach retirement and need to start making decisions about managing your pension.
“Bringing your pension pots under one roof can make it easier to make decisions, keep track of investment performance and keep an eye on your pension fees.
“However, in some cases, pensions have hidden valuable benefits, like guaranteed annuity rates, that are lost on transfer so it’s worth checking the small print before you decide.”
