Workplace pensions: the basics everyone should know

If you're employed and over 22, you're almost certainly paying into a workplace pension. That's a good thing — but most people never look at it again after signing up.

How the contributions add up

The minimum is 8% of qualifying earnings: 5% from you, 3% from your employer. On a £30,000 salary, that's over £1,800 a year going in — and roughly a third of that is free money from your employer plus tax relief.

Match your employer's maximum

Many employers will match higher contributions — 5% for 5%, or even 6% for 6%. If yours does, and you can afford it, this is usually the first thing to do before other investing.

Where is it invested?

Most people are in the default fund, which is fine for most people. But it's worth a five-minute look: is the risk level right for your age? Are there lower-cost funds available?

Consolidating old pots

If you've had several jobs, you may have several small pots. Consolidating them can make life easier, but check for exit fees, guaranteed benefits, or protected retirement ages before moving anything.