There’s an old Chinese proverb that says, “The best time to plant a tree was 20 years ago. The second best time is now.”
The same is true for retirement planning.
If you’re only just starting to consider your post-work life, you’re not alone.
According to PensionsAge, around one-third of Brits don’t have a pension plan. Meanwhile, a YouGov survey, commissioned by M&G and reported by LancsLive, reveals that most Brits don’t expect to start saving for retirement until age 43.
While starting early helps, there are still steps you can take later in life. Here are five ways to boost your retirement savings – and how we could support you.
1. Compounding growth may be more effective early, but it’s never too late to start benefiting
Albert Einstein once famously remarked that compounding growth was the “eighth wonder of the world”. Whether there’s a better “eighth wonder” may be debatable, but the benefits of compounding growth are undeniable.
Compounding means the earlier you start contributing to your pension, the longer your wealth has to grow.
Nest provides a compelling example.
Imagine two people start saving £200 each month into their pension, including tax relief and employer contributions.
Both people pay into their pension for 10 years, totalling £24,000 in contributions. However, Person One makes contributions between the ages of 22 and 32, while Person Two makes theirs between 32 and 42.
Assuming yearly growth of 5% (net of any charges) until age 60, Person One would have a pot worth almost £125,000, while Person Two would only have £77,000.
Although both saved the same amount, the earlier saver ends up with more at retirement.
Even if you start later, you could still benefit from compounding.
If you’re not sure how much to contribute to achieve the retirement fund you want, please get in touch. We can help you set clear goals and calculate how much you need to save.
2. You can benefit from tax relief on pension contributions
Perhaps one of the biggest benefits of pension saving is tax relief at your marginal rate.
You’ll only receive tax relief on personal pension contributions up to 100% of your UK earnings, or £3,600 if this is greater (for example, if you’re a low or non-earner).
It’s important to remember that your pension contributions, including any made by your employer, are also limited by the Annual Allowance. In 2025/26 and 2026/27, this is set at £60,000 for most people. However, if you’ve already taken money out of a pension, or you’re a higher earner, your Annual Allowance could be much lower.
You’ll usually receive basic-rate tax relief on your pension contributions automatically. If you’re a higher- or additional-rate taxpayer, you can claim further tax relief of 20% or 25% through your Self Assessment return.
Regardless of your age, contributing to your pension may still be worthwhile, as you qualify for tax relief until the age of 75.
Tax relief, the Annual Allowance, and carry forward rules can be complex. If you’d like support and guidance, we can help you maximise your savings and ensure you’re claiming all the tax relief you’re entitled to.
3. You could purchase additional credits towards your State Pension
The State Pension can provide a solid base for your retirement income, which you could build on with your private pension and other savings.
From April 2026, the new full State Pension will be £241.30 a week, but you’ll need a certain number of “qualifying years” to receive it.
You can accrue these by making National Insurance contributions (NICs). You need at least 10 qualifying years to receive any State Pension at all, or 35 years for the full amount.
It’s also worth remembering that you could accrue a qualifying year when you receive certain benefits, such as if you’re off work with an illness or caring for someone.
If you discover gaps in your NI record, you may be able to purchase additional credits.
Buying National Insurance credits isn’t always suitable for everyone, so it’s worth speaking to one of our Financial Planners. They will review your circumstances and advise you whether it would be the right move for you.
4. You may have lost pension pots that you could rediscover
Starting to plan your retirement later in life can feel like an uphill battle, but you may already have pension savings from earlier years that you’ve simply lost track of.
This is especially true if you’ve held various jobs throughout your career.
The Pensions Policy Institute (PPI) reports that an estimated £31.1 billion could be sitting in lost pension wealth, and that the average lost pension pot could be worth around £13,620.
So, if you’re worried you haven’t saved enough, you may have tucked away more than you think.
To track down any “lost” pots, start by contacting your old providers (if you know who they were). If not, contact your former employers who may be able to put you in touch.
Providers usually send annual benefit statements, so checking old files or emails may help. Alternatively, the government’s Pension Tracing Service might prove helpful.
We can help you track down old pensions and help you take appropriate steps to ensure you’re using your savings effectively.
5. Use property wealth
If time is limited, we can help you explore alternative options.
For example, downsizing could help you to access some of the value tied up in your home, potentially generating a significant sum to boost your retirement income.
If you’re deeply attached to your home and don’t want to move, you could consider equity release, allowing you to withdraw tax-free cash from the value of your home as a lump sum or a series of smaller payments.
Equity release isn’t suitable for everyone and will reduce the value of your estate, so it’s wise to discuss it with family first.
The amount of equity you can release will depend on your circumstances. If you’d like to find out more, please get in touch.
Wherever you are in your retirement journey, we’ll help you build a plan to achieve your goals.
Get in touch
It’s never too soon to plan for the future you want – and we’ll use our financial planning expertise to help turn your dreams into a reality.
To find out more about how we could help you, please email contactme@kbafinancial.com or call us on 01942 889 883. We’d be delighted to answer your questions.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
HM Revenue and Customs’ practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pensions Regulator.
A lifetime mortgage is not suitable for everyone, and it is important to seek financial advice before taking any action. All other options available should be explored before choosing equity release.
Interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home potentially to nothing. Please discuss with your family and beneficiaries.
Approved by The Openwork Partnership on 02/03/2026.