Guide
How to read a workplace pension statement without the jargon fog
The five figures on a typical annual statement that deserve your attention before you change contribution rates.
Most annual statements lead with a projected retirement income. Treat that figure as an illustration under stated assumptions, not a promise. Look next at the current pot value and the contributions you and your employer paid in the year.
Charges appear as a percentage or as pounds. Compare them with the fund choice you hold. Default funds are convenient; they are not always the lowest cost or the best match for your time horizon.
Death benefit nominations often sit on a separate form. Confirm the named people still reflect your wishes after marriage, divorce, or the birth of a child.
If you have several pots from previous employers, list them before you decide to consolidate. Small pots can be easier to track when combined, but some older schemes hold guarantees worth preserving.
Bring unclear statements to a planning meeting. Half an hour spent decoding two or three documents often reveals contribution gaps or forgotten deferred benefits that change the retirement map.