As accountants, your pension arrangements may differ from the norm — whether you have a defined benefit scheme, a workplace pension, or need to set up your own SIPP. This guide covers everything you need to know.
- Check ongoing charges — a 1% fee gap can consume a quarter of a lifetime pot
- Capture the full employer match before any other saving — free money first
- Check your State Pension forecast — filling NI gaps is often exceptional value
- Tax relief turns £80 into £100 (£60 for higher-rate payers) — the best mainstream tax break
What Actually Moves the Needle
The quietest number on your statement is the most important: 0.5% vs 1.5% annual charges on a £100k pot over 25 years is a six-figure difference. Older workplace pensions from the 2000s are prime candidates for expensive drift.
The State Pension forecast is a to-do list, not just a statement: gaps from career breaks can often be filled — buying back years is frequently the best annuity money can buy. Check the forecast on GOV.UK before the buy-back window rules tighten.
Pension Options for Accountants
| Provider | Annual Fee | Type | Rating |
|---|---|---|---|
| Hargreaves Lansdown | 0.45% p.a. | SIPP | 5★ |
| AJ Bell | 0.25% p.a. | SIPP / LISA | 5★ |
| PensionBee | 0.50–0.75% p.a. | Combine pensions | 4★ |
| Aviva | 0.40% p.a. | Workplace / SIPP | 4★ |
| Vanguard | 0.15% p.a. | Low-cost index | 5★ |
Understanding Your Pension as Accountants
- Workplace pension — auto-enrolled by your employer, minimum 8% total contribution
- SIPP — self-invested personal pension, control your own investments
- NHS / Public sector pensions — defined benefit, exceptionally valuable
- State pension — £221.20/week (2026/27) after 35 qualifying NI years
- Additional voluntary contributions (AVCs) — top up your workplace scheme
How Much Should Accountants Save?
A common rule of thumb: save half your age as a percentage of salary. So if you start at 30, save 15% of salary. The earlier you start, the more compound interest works in your favour.
Pension Calculator
Use our free pension calculator to see what your retirement pot could look like based on your current contributions and expected retirement age.
Frequently Asked Questions
Should I consolidate old pensions?
Usually, but check first. Beware exit fees and final-salary schemes, which you should almost never transfer out of.
How much should I pay into a pension?
A rough rule: halve your age when you start and contribute that percentage of salary, including employer contributions. The 8% auto-enrolment minimum is a floor, not a plan.
What is pension tax relief actually worth?
Every £80 you contribute becomes £100 in the pot at basic rate. Higher-rate taxpayers reclaim another £20 through self-assessment — free money most people under-use.
Is the State Pension enough to live on?
For most people, no — it covers roughly a minimum standard only. Check your forecast on GOV.UK; buying missing NI years is often the best-returning purchase available.
When can I access my pension?
Currently from age 55, moving to 57 from April 2028. The first 25% is tax-free; the rest is taxed as income, so pacing withdrawals matters.
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