Retirement is closer than you think, even if it still feels a few years away. From April 2026, the UK State Pension is set to rise by 4.8%, taking the full new State Pension to £241.30 a week under the triple lock. That sounds reassuring, but it doesn’t tell the whole story. Government data shows that four in ten people are not saving enough, many face an £800-a-year shortfall in private pension income, and 45% of working-age adults save nothing at all into a pension. Women, the self-employed, and low earners are hit hardest, with women’s pension pots around 48% smaller on average.
At the same time, frozen tax thresholds, rising living costs, and a State Pension age moving towards 68 for people born after 1978 mean complacency is expensive. The revival of the Pensions Commission underlines the scale of the problem and the urgency to act. The good news is that small, sensible steps taken now can make a huge difference later. Here are ten things you should do before retirement to protect your income and avoid nasty surprises.
What to Do Before Retirement Key Highlights
| Action | Why It Matters Now (2026 UK Updates) |
| Check State Pension forecast | New full rate £241.30/week from April 2026; filling NI gaps can add up to £1,500 a year |
| Track lost pensions | Dashboards connect 60m+ pots; forgotten savings can be worth thousands |
| Maximise workplace contributions | Auto-enrolment minimum is 8%; employer money is “free” growth |
| Pay off high-interest debt | Falling interest rates help, but debt still erodes retirement income |
| Build an emergency fund | Avoid dipping into pensions for shocks; protect long-term growth |
| Review investments | Reduce risk gradually; annuity rates and markets are shifting |
| Plan healthcare costs | NHS delays and long-term care can drain savings |
| Optimise tax and benefits | Frozen thresholds increase tax; Pension Credit can boost income |
| Update will & powers of attorney | Protect assets and family ahead of future inheritance tax changes |
| Model full retirement income | State pension helps, but private gaps remain significant |
| Official Website | https://www.gov.uk/ |
1. Check Your State Pension Forecast
The first thing you should do is check your State Pension forecast on Department for Work and Pensions services via GOV.UK. This shows how much State Pension you’re on track to receive and whether you have gaps in your National Insurance (NI) record.
From April 2026, the full new State Pension is expected to be £241.30 a week, or about £12,548 a year. But many people won’t get the full amount because they don’t have enough qualifying years. If your forecast is lower, you may be able to pay voluntary NI contributions to fill gaps. In some cases, this can increase your State Pension by hundreds or even over £1,500 a year for the rest of your life.
This is one of the best value “investments” available, but deadlines apply for topping up older years. Checking your forecast early gives you time to act rather than missing the opportunity entirely.
2. Hunt Down Lost Pension Pots
Most people change jobs several times during their working life, and every job can leave behind a pension pot. Research suggests the average lost pot can be worth £20,000 or more. With auto-enrolment, it’s easier than ever to lose track.
The Pensions Dashboards Programme is now connecting over 60 million pension records, allowing you to see most of your pensions in one place. You can access help through MoneyHelper, which offers free, impartial guidance.
Finding lost pensions can instantly improve your retirement outlook. You don’t have to consolidate them straight away, but simply knowing what you have gives you control. Before combining pots, always check for guarantees or special benefits that might be lost.
3. Maximise Workplace Pension Contributions
Auto-enrolment means most employees are paying 8% of qualifying earnings into a workplace pension: 5% from you and at least 3% from your employer. While this is a good start, it is often not enough to fund a comfortable retirement.
If your employer offers matched contributions above the minimum, increasing your payments is usually a no-brainer. Employer contributions are effectively free money, and you also benefit from tax relief.
Even small increases matter. Adding just £100 a month to your pension could grow to £100,000 or more over 20 years, depending on investment returns. With the State Pension age rising, workplace pensions are more important than ever.
4. Pay Off High-Interest Debts
Debt and retirement don’t mix well. Credit cards, personal loans, and expensive car finance can eat into income that should be supporting you later in life.
Interest rates are expected to ease, with Bank of England forecasts suggesting rates could fall to around 3.25% by late 2026. Even so, high-interest debt often costs more than your pension investments earn.
Clearing debt before retirement frees up cash flow and reduces stress. If you’re self-employed, dealing with business debts is just as important, as many self-employed people save little or nothing into pensions.
5. Build a Solid Emergency Fund
An emergency fund protects your pension. Without one, unexpected costs—like home repairs or health expenses—can force you to dip into long-term savings at the worst possible time.
Aim to keep three to six months’ essential expenses in an easy-access savings account. With savings rates still relatively strong, your money can earn interest while staying accessible.
Be mindful of means-tested benefits later in life. Savings over certain thresholds can reduce entitlement, so balance accessibility with efficiency.
6. Review and Adjust Your Investments
As retirement approaches, your investment strategy should change. Growth is still important, but protecting what you’ve built becomes a higher priority.
Review how much risk you’re taking and whether it matches your timeline. Many people gradually move from higher-risk investments to a more balanced mix that includes bonds and cash-like assets.
Free guidance is available from Pension Wise. They won’t tell you what to do, but they will help you understand your options, including drawdown and annuities. Annuity rates can change as interest rates move, so timing matters.
7. Plan for Healthcare and Later-Life Costs
Healthcare is one of the biggest unknowns in retirement. While the NHS remains free at the point of use, waiting lists are growing, and many retirees turn to private treatment.
Long-term care is another major risk. Residential care can cost £50,000 a year or more, and only limited help is available. Planning ahead—through savings, insurance, or property decisions—reduces the chance of a financial shock later.
8. Optimise Tax and Claim Benefits
Tax doesn’t stop in retirement. In fact, frozen tax thresholds mean more people are dragged into higher tax bands even if their income only rises slightly.
You can usually take 25% of your pension pot tax-free, but how you use the rest matters. Drawing too much too soon can push you into higher tax rates.
Many pensioners also miss out on Pension Credit, which can boost income and unlock other help like council tax reductions. Checking eligibility can add thousands a year to your income.
9. Update Your Will and Legal Arrangements
Retirement planning isn’t just about money—it’s about control. A valid will ensures your assets go where you want them to, and naming beneficiaries on pensions keeps them outside your estate for inheritance tax purposes (under current rules).
You should also set up lasting powers of attorney for health and finances. This allows someone you trust to act for you if you lose capacity. It’s far easier and cheaper to arrange this now than later.
10. Model Your Full Retirement Income
Finally, bring everything together. Use retirement calculators to combine your State Pension, workplace pensions, savings, and any other income against realistic spending needs.
Current estimates suggest a comfortable retirement for a single person can cost around £43,900 a year. Compare this with your projected income and adjust your plans if needed—by saving more, working a bit longer, or changing spending expectations.
Modelling different scenarios gives you confidence and flexibility. Retirement doesn’t have to be all-or-nothing; phased retirement or part-time work can bridge gaps and protect savings.
Retirement doesn’t sneak up on you overnight—it creeps closer year by year. With the State Pension rising in 2026 but private savings gaps still widespread, the choices you make now matter more than ever. By checking your forecast, finding lost pensions, boosting contributions, clearing debt, and planning carefully, you can turn today’s uncertainty into tomorrow’s security.
FAQ’s
How much will the UK State Pension be in 2026?
From April 2026, the full new State Pension is expected to be £241.30 a week, or about £12,548 a year, under the triple lock.
What is the pensions dashboard?
It’s a free service that lets you see most of your pension pots online in one place, helping you track and manage your retirement savings.
Can you boost your State Pension?
Yes. If you have gaps in your NI record, voluntary contributions can increase your pension, sometimes by £1,500 a year or more.
