The Secret Sauce: How to Make Your Pension Work Harder for You

Let’s be honest: pensions aren’t exactly the most exciting topic at the dinner table. But if you’ve ever thought, “Surely there’s more I could be doing with mine?”—you’re absolutely right.

Most people set theirs up once, then quietly forget about it like a slow cooker left on low. The good news? You don’t need to become a financial expert or spend your weekends with a calculator to boost your pension’s performance. You just need to stir in a few key ingredients. Here’s the recipe.

Start With the Basics—But Do Them Well

First things first: are you paying in regularly? Not just what your employer takes from your salary, but have you looked at whether that amount still makes sense for you now?

A lot of us set our contributions years ago—maybe when we were more focused on mortgage payments and childcare costs—and haven’t touched them since. But even a small increase today can add up to a serious chunk of money by the time you retire. Think of it like giving your pension a little caffeine shot.

And don’t forget to check what your employer is offering. Many companies will match your contributions up to a certain level, and if you’re not taking full advantage of that… well, you’re effectively turning down free money. And who in their right mind does that?

Don’t Underestimate Tax Relief—It’s Magic Stuff

Here’s a perk that often flies under the radar: every time you contribute to your pension, HMRC chips in too. Basic-rate taxpayers get 20% relief automatically. If you’re on a higher income, you might be able to claim even more through your self-assessment return.

It’s one of the rare moments where the taxman actually gives you something—so grab it with both hands. If you're self-employed, this can be especially powerful, and yet so many miss out because they didn’t realise what they were entitled to.

Investments Matter (Even If You’d Rather Not Think About Them)

Now, we get it—looking at your pension investments might sound about as appealing as sorting your sock drawer. But bear with us. Your pension is more than just a savings account; it’s a collection of investments, and the way those are spread out matters.

Are you still sitting in the default fund your provider stuck you in 12 years ago? If so, it might be time for a refresh. Different funds suit different stages of life. If you’re in your 40s or 50s, you might want a mix of growth and stability, rather than being too cautious or too wild.

You don’t need to become a stock market guru. Just checking in once a year—or having someone check in for you—can make a world of difference.

Play the Long Game

Markets go up. Markets go down. That’s what they do. The trick is not to panic when your pension takes a bit of a wobble (especially if the headlines are screaming “crisis!” in bold red letters).

Consistency beats drama. Keep paying in, review your strategy every now and then, and trust the process. It’s a marathon, not a sprint. Or more accurately, a Sunday roast—not a microwave meal.

Let’s Bring It All Together

Your pension doesn’t have to be a mystery or a worry. A few smart changes—upping your contributions, grabbing those tax relief boosts, and making sure your investments are actually working for you—can put you miles ahead of where you might otherwise end up.

So, what’s your next step? Give your pension a once-over. And if you're not sure what you're looking at, that's what we’re here for. Friendly advice, plain English, and absolutely no jargon.

📞 Want help fine-tuning your retirement recipe? Book a free pension review—no pressure, just straight-talking guidance from someone who has helped 100s of Directors, Senior Execs and hardworking employees turn more of their pennies into a lot more pounds. Here's Gavin's Diary if you want to book a free call in.