How to Keep Track of a Pension Pot and Its Value

Keeping an eye on your pension pot is a smart financial move at any age, making sure that you are saving and prepared for the future. Your pension pot is invested across various sectors including, stocks, bonds, property and more. This means the value can go up and down depending on the value of the stocks that day. The important value is how it grows over time and checking this is stable and growing ready for your retirement age will help you when you need it most.

 

Why Pension Pots Can Lose Value

Pension pots are typically invested in a variety of sectors such as:

  1. Stocks (shares) – Investments in public companies.
  2. Government bonds – Loans to governments that pay interest over time.
  3. Corporate bonds – Loans to companies.
  4. Property – Investment in commercial or residential real estate.

Because pensions are invested in various markets, their value can fluctuate. For example, a stock market downturn can lead to temporary dips in pension value because shares in the portfolio lose value. Similarly, a slump in property values or lower yields from bonds can negatively impact your pot.

However, pension funds are long-term investments, and dips are expected to recover. If you are discovering a loss of value in your pension, you shouldn’t worry as this should only be short term. This is why it’s a great idea to check on your pension pot occasionally, so you can make sure everything is on track.

 

How to Track Your Pension Pot

Almost every pension provider offers online access to track your pension savings, check performance, and project future value.

  1. Log into your pension account online – Every pension provider should give you access to an online portal. You should be sent and ID and will often need your national insurance number or some other form of document ID. Through this, you can check your current pension balance, review its performance over time, and explore any additional benefits, such as projections of how much you'll have at retirement.
  2. Check your annual pension statement – You will receive a yearly statement detailing the contributions, investment returns, and current value of your pension. This can provide a snapshot of how well your pension has performed and any fees that may have been applied.
  3. Use pension calculators – Many providers offer online tools that allow you to forecast the value of your pension at retirement based on current contributions. These tools are a great way to estimate whether your savings are on track.
  4. Make voluntary contributions – If you're concerned about your pension's growth, consider adding voluntary contributions. Most pension schemes allow you to top up your pot. The government may offer tax relief on these contributions, making it a very tax-efficient way to save more for retirement.

 

How to Access Pensions from Different Providers

If you've worked for several companies, you may have pensions spread across different providers. Keeping track of multiple pension pots can be challenging, but it’s essential to consolidate this information.

  1. Use the government’s pension tracking service – The UK government offers a pension tracing service to help you locate pensions from previous jobs. All you need is the name of your former employer, and the service will guide you to the relevant pension provider.
  2. Contact your pension provider – Each pension provider should send you regular updates, either through the post or online. Keep these records safe and log into the portals to monitor each pension’s value. If you’ve lost track of an account, contact the provider directly, and they can assist in retrieving your details.
  3. Consolidating pensions – If you have multiple pension pots, it may be wise to consider consolidating them into one plan. Many pension providers allow you to combine different pensions into a single account, making it easier to track and manage your retirement savings.

 

What are the different pension providers?

Different pension providers have different processes for accessing your pension information. The most common providers in the UK include:

  • Nest Pensions – Used by many employers for auto-enrolment. You can log in at the Nest website to check your balance.
  • Scottish Widows – Offers both individual and workplace pensions. They have an online portal where you can view and manage your pension.
  • Standard Life – Similar to other providers, they offer a dashboard to monitor your pension’s performance.
  • Aviva – Aviva offers a wide range of pension plans, and their online service allows you to track your pension pot easily.

If you're unsure of who your provider is, check with your employer, or use the government’s tracing service.