Pension planning for people considering income drawdown has specific considerations that standard guides often miss. This page covers everything relevant to your situation with up-to-date guidance for 2026.
- Capture the full employer match before any other saving — free money first
- Check your State Pension forecast — voluntary years can return 30%+ annually for life
- Check ongoing charges — a 1% fee gap can consume a quarter of a lifetime pot
What the Comparison Sites Won't Tell You
Unclaimed employer match is a pay cut you volunteered for: contribute enough to capture the full match — an instant 100% return before growth — before ISAs, overpayments or anything else.
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. Check the ongoing charge on every pot; switching platforms is easier than it looks.
Key Pension Considerations for Pension Drawdown
| 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★ |
Your Pension Options
- Review your current pension provisions and projected retirement income
- Consider consolidating old pensions — easier to manage and may reduce fees
- Check your State Pension forecast at GOV.UK
- Maximise pension contributions — you get tax relief at your marginal rate
- Consider whether drawdown or annuity is right for your situation
Free Pension Tools
Use our pension calculator to model different retirement scenarios. The government's free MoneyHelper service also offers free pension appointments.
Frequently Asked Questions
Is the State Pension enough to live on?
Not for most lifestyles — it covers roughly a minimum standard only. Check your forecast on GOV.UK; buying missing NI years is often the best-returning purchase available.
What is pension tax relief actually worth?
Every £80 you contribute becomes £100 in the pot at basic rate. Higher-rate taxpayers effectively pay just £60 for £100 of pension — free money most people under-use.
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.
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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