1. Get on track

You need to understand what you’ve got and what you’ll need for the retirement you want.

2. Get on top of debt

Before you can really start planning for the future, you could try to pay off any debts. You should consider paying off any high interest credit cards and/or loans.

3. Get some relief

Tax doesn’t have to be taxing. For every £80 you pay into your personal pension, the Government pays in £20 into your pension, and if you are a higher rate taxpayer then you will be entitled to more tax relief. You should consider topping up your pension payments as frequently as you can if your product rules allow you to.

It’s one of the most tax-efficient ways to save. Can you afford to give up free money?

4. Bring your pensions together

Have you worked for a number of different employers and joined a new company pension scheme each time? Do you have more than one pension?

Bringing all your pension funds together in one place could be a good idea. You could cut the fees you pay and make it easier to keep track of your total retirement pot.

Consolidating other pensions won't be right for everyone. There are a number of points to consider, as you could be losing money by giving up any valuable guarantees or benefits from your other pensions. If your other pension(s) provide an income guarantee (for example a final salary pension), then you will need to take professional advice to ensure you understand how much money you could lose. Please check if this will apply to any pension you are thinking of transferring.

There is also no guarantee that you will get more as a result of consolidating.

Remember, you now have the choice to withdraw all your pension as cash.

5. Check your investments

Investments have the potential to fuel your pension growth. You need to regularly review your investments to ensure your pension has the best opportunity to grow.

Remember, the value of any investment can go up or down and may be worth less than was paid in.

6. Assess your State Pension

Apply for your State Pension
About four months before you reach State Pension age, you’ll receive a letter telling you how to claim your State Pension.

Consider delaying your State Pension
This could increase your State Pension by 5.8% for every year that you delay.

Haven’t paid enough NI contributions?
If you haven’t paid National Insurance contributions or received credits for 35 years, you won’t receive a full State Pension. But you could increase the amount you receive by ‘buying’ additional years of National Insurance contributions.

7. Work out how much you’ll need in retirement

You need to start thinking about how much money you’ll need to last you for the rest of your life. Think about how much income you’re likely to receive in each year and how many years you’ll need it to last for.

8. Understand your options

If you’re aged 55, you can make income withdrawals from your pension as and when you want. There are some exceptions to this which may mean you can access your money earlier.

You need to understand your options now so you can make the choice that’s right for you. You may need to transfer to a different product to access some of the options described here.