Your Pension Pot 

What if its size today wasn't the most important thing about it?

If you earn a decent wage but have honestly no idea what’s in your pension, or whether it’s anywhere near enough, here’s the first thing to know: you’re not behind, and you’re not alone.  Most of us feel exactly the same way.   

The truth is, hardly any of us were taught how a pension actually works (it certainly never came up in a class I sat in).

So we judge ourselves by the one thing we can see: today's balance. The problem is, that's only a small part of the picture.

A pension isn't designed to impress you today. It's designed to grow over decades. So before you decide you're "behind", here are three things that matter far more than the size of your pot right now.

Three things that actually boost your pension 

1. Time does most of the heavy lifting

Good news to start with: your pension isn’t sitting still doing nothing; it's usually invested, which means it has the potential to grow over time. If those investments grow, that growth can generate further growth in future years. This is what's known as compounding. Of course, investments can fall in value as well as rise. A modest pension with two decades still to retirement has much more opportunity to grow than one that's only a few years away from being accessed.

That's why the years ahead of you matter every bit as much as the ones behind. 

Picture a snowball at the top of a long hill. It barely moves at first, then picks up size and speed the further it rolls, growing fastest near the bottom. Your pension works the same way, which is pretty reassuring once you stop expecting it to dazzle you on day one!

2. You're usually not building it on your own 

When you pay into a workplace pension, you're rarely the only one contributing. Two other contributors usually help build it:

• Your employer. If you're paying into a workplace pension, your employer will usually contribute too.
• Tax relief from the government. Most pension contributions also receive tax relief, which increases the amount invested, although the exact amount depends on your circumstances and how your pension scheme operates.

That's one of the reasons pensions can be such a powerful way to save for retirement. Your money often starts with a boost before it even has the chance to grow.

3. A little more can go a very long way 

If you've taken time out to raise children, worked part-time, cared for family, or simply started thinking about pensions later than you'd hoped...

It's very easy to feel like you're behind. I hear this all the time. But later doesn't necessarily mean too late.

Even relatively small increases in your monthly pension contribution can make a meaningful difference over many years because of additional contributions, tax relief (where applicable) and the effects of long-term investment growth.

For example, increasing your contribution by £50 a month could potentially result in tens of thousands of pounds more in retirement over a long investment period, depending on investment performance, employer contributions and tax relief.

The exact outcome will vary depending on your pension, your investment choices, future investment performance and your own circumstances, but it's often worth checking what even a small increase could mean over time.

One important thing to remember is that pension money is generally locked away until the normal minimum pension age (currently 55, rising to 57 from 2028, under current legislation), so it's money you'll want to be confident you won't need sooner.

Two myths

Worth letting go of...

Myth 1: "My pension is small because I'm bad with money."

Your pension reflects much more than your financial ability. Career breaks, part-time work, caring responsibilities and income all play a part. Your pension isn't a report card. It's simply where you're starting from.

Myth 2: "It's too late for me to do anything about it."

Also no.  I hear this a lot from people who are convinced they’ve left it too late. You can't change the past, but you can influence what happens next. Every year your pension remains invested gives it more opportunity to benefit from the potential long-term investment growth , and every contribution you make is a step towards your future self.

One thing

To Try This Week

Find your number. 

Most of us genuinely have no idea what’s in our pension, let alone where it’s heading, and you can’t shape something you’ve never actually looked at.  

A pension calculator gives you that picture in about two minutes.  

So put the kettle on, and start here: 

• Find your current balance, or run it through a pension calculator for a quick projection.  
• Check what you're paying in now, and what your employer adds on top.
• See an illustration of what your pension could look like at retirement if contributions continue.

Once you can see where you stand, you can make a more informed decision on what your next step needs to be.  You don't have to do everything today. You just need to know where you're starting from.

Find your number with the PensionBee Pension Calculator →

Sources: PensionBee, UK Pension Landscape, July 2025; Royal London, Tackling the Gender Pension and Wealth Gap, January 2024. Projections assume contributions continue, around 5% annual growth and retirement at 67. Investment values can fall as well as rise. This is general information, not financial advice.

We've collaborated with PensionBee to provide this pension calculator. I've been working with them this year to create educational videos on social media, and I wanted to share this tool with you here since it's one of my favourites!

This article is for general information only and isn't personal financial advice. Pension values aren't guaranteed. Investments can fall as well as rise, and you could get back less than you invest. Any examples are for illustration only and aren't a prediction of future returns.