Reading a workplace pension statement without the jargon fog

A workplace pension statement is rarely written for a hurried evening at the kitchen table. Still, four numbers repay the effort of finding them.

1. Current value and contributions

Note the pot value and whether you and your employer are still contributing. A deferred pot with no contributions behaves differently from an active one when you think about consolidation.

2. Charges

Look for the annual management charge or total expense figure. A difference of half a percent sounds small until you multiply it across twenty quiet years.

3. Guarantees and protected features

Some older schemes hold guaranteed annuity rates or protected tax-free cash percentages. These features can make a “cheap” modern SIPP a poor swap. Circle any mention of guarantees before you assume a transfer is tidy.

4. Retirement age and access rules

Schemes still quote a selected retirement age that may not match when you actually want money. Access from age 55 (rising for some cohorts) is a legal backdrop, not a recommendation to draw early.

Bring marked-up statements to a pension consolidation consultation if you hold several pots and feel stuck comparing them alone.