22 January 2026
general
As we enter 2026, you may be making plans to grow your retirement savings.
In fact, Pensions UK found that 1 in 10 working-age survey respondents plan to increase their pension contributions as part of their new year resolutions.
Whether retirement is decades away or just around the corner, there may be lots of opportunities to boost your pension pot in 2026, be it through a workplace pension or a self-invested personal pension (SIPP). By making the most of the strategies available to you, you could help accelerate your savings’ growth and prepare for the retirement lifestyle you’re dreaming of.
Here are four practical steps you could take to boost your pension pot in the year ahead.
1. Prioritise pension contributions
One of the first ways many people look to boost their retirement savings is by increasing their own pension contributions.
Of course, it isn’t always as straightforward as just paying more into your pension pot. The funds will need to come from somewhere, which could mean reassessing your budget to adjust your spending, saving, and investing habits.
It’s not uncommon for expenses to creep up over the years, due to both inflation and evolving purchasing decisions. So, it’s often worth examining all your outgoings regularly to help identify where you can cut back on spending.
If you’re regularly paying into a savings or investment account, you might consider redirecting some funds into your pension. Typically, when funds in a pension earn interest or investment returns, the growth is tax-free – often making them a good option for growing your wealth. Remember that you can’t access your private pensions until 55, rising to 57 in 2028, so take the time to consider your options before rerouting income.
It’s never too early to start boosting your pension contributions. Because the funds are typically invested and earn compound returns, the sooner you pay in, the more time your pot will have to grow.
2. Make the most of your employer’s contributions
As you pay more into your pension, you may also be able to claim further contributions from your employer.
If you’re enrolled in a workplace defined contribution (DC) pension scheme, your employer will typically pay in at least 3% of your salary, while you pay in a minimum of 5%.
However, some employers will offer to match their employees’ pension contributions up to a certain level. In 2022, research by the Money & Pensions Service (cited on their Fincap website) found that half of employers offered matched contributions.
Before factoring in tax benefits, this can mean that for every £1 you pay into your pension, £2 goes into your pot.
55% of employers also offered salary sacrifice, which could see more go into your workplace pension each month – although it’s not suitable for every saver.
In any case, it’s often worth checking what pension contributions your employer offers, particularly if you pay into a private pension, rather than one provided by your workplace, as employers typically only contribute to their own schemes.
3. Claim the maximum tax relief on your pension contributions
Generally, tax relief is available on pension contributions up to the value of 100% of your earnings.
You can usually claim tax relief at your marginal rate of Income Tax. So, if you’re a higher-rate taxpayer, you could top up your pension contributions by an additional 40%.
Tax relief is automatically applied at the basic rate of 20%. If you’re a higher- or additional-rate taxpayer, you can claim a further 20% or 25%, respectively, by completing a self-assessment tax return each year.
Yet, according to PensionsAge, just 47% of higher-rate taxpayers surveyed understood what tax relief was. As a result, more than half could be missing out on a significant boost to their pension pots.
If you’re yet to claim your higher- or additional-rate tax relief, the good news is you may be able to backdate your claim by up to four tax years. Depending on your contributions in that time, you could boost your retirement savings by a potentially significant amount.
4. Review your scheme’s investment portfolio
As mentioned, pension funds are typically invested to help your pot grow further.
Often, pension providers will spread your funds across a diverse range of assets to mitigate the risk of market fluctuations. However, you are not obliged to stick to the portfolio curated by your provider, and may choose to adjust your investments to suit your own needs and preferences.
In some cases, you might find your pension funds are being invested more cautiously than you would like, so you might opt to take on more risk for the chance of higher returns over the long term.
Conversely, you may wish to take a more risk-averse approach and choose less volatile investments. This is particularly common when nearing retirement, with savers often seeking to limit any potential losses due to market fluctuations.
As your stage of life and needs change, or if you’re not getting the returns you expect, you may wish to examine the investment allocation in your pension. A financial planner can help you devise a plan tailored to your preferences and goals.
Get in touch
If you’re looking for support to boost your retirement savings, our financial planners could help define a strategy that works for you. Working closely with you to build a comprehensive financial plan, we can support you to set goals, grow your savings, and prepare for your dream retirement.
Email enquiries@jesellars.co.uk or call 01934 875 919 to find out more about how we can help you.
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.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate cashflow planning or tax planning.
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.
Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation, and regulation, which are subject to change in the future.
