Triple Lock: what will the State Pension be in the future?
Are future increases to pensioner payments under threat?
Ed Monk
Fidelity International
21 January 2026
Saving for retirement in your 20s and 30s
Important information - investment values and income from investments can go down as well as up, so you may get back less than you invest. SIPP eligibility and tax treatment depends on individual circumstances and tax rules may change. You cannot normally access money in a pension until age 55 (57 from 2028). Before transferring a pension, compare all the benefits, charges and features and always seek financial advice if you’re unsure.
In your 20s and 30s you’ve probably got so many priorities competing for your attention that retirement may be the last thing on your mind; it may feel so far away that you can think about it later. But, if you start saving for retirement now (with even a moderate amount), you have one great advantage over those who start later.
The benefits of starting early
The theory
Time is one of the most important factors in investing. The longer you invest for, the more opportunity there is to benefit from the stock market’s long-term growth potential. Of course, there are no guarantees, but starting earlier - rather than later - can make your money work harder over time.
How it works in practice
This example is for illustrative purposes only. In reality, investment values can fall as well as rise rather than give a steady return. Charges would also apply and reduce any returns.
Petra starts investing £1,000 a year at 25 years old, while Jonathan invests the same amount from the age of 35. By the time they both reach 65, not only does Petra have significantly more money, she also stopped paying in at the age of 55. This is the power that starting investing early versus late can have.
Tax relief boost - for every £80 saved (subject to limits*), the government provides £20 in tax relief, and you may get more back in your tax return if you pay tax at a higher rate.
Longer retirements - If you’re in your 20s or 30s, you’re likely to spend 20 years in retirement - or even longer.
What you can do now
If your employer offers a workplace pension, then you should consider contributing whatever is required to get the maximum employer contribution.
If you are self-employed or simply want to pay more into your pension, then you can pay in and get tax relief on anything up to the annual limit of £60,000* or to 100% of your earnings if that’s lower.
As your circumstances change, you can easily increase, stop or restart your contributions any time to suit you.
Any time you get a pay rise, think about increasing your pension contributions by the same percentage.
As you’re likely to have a number of jobs, you could easily end up with a dozen or more pensions by the time you retire. Tracking multiple pensions through multiple providers is tricky and time consuming, it might be easier in the long run to bring them together as you go.
Bringing your pensions together means you have just one company to deal with for every aspect of your income. Just be sure that if you transfer your pensions to one company you check that you won't lose any valuable benefits, what charges apply and that you have access to all the income options you need.
Important information - Before making your decision, please read our pension transfer factsheet. This explains the things you need to consider before you transfer, including fully comparing the benefits, charges and features offered. Pension rules apply. Seek advice from Fidelity adviser or another authorised financial adviser if you're unsure.
When it comes to choosing which investments to include in your SIPP, we’ve plenty of online tools and guidance to help you decide. We’ve also got a range of investment guides and videos to help you make the most of your money.
Did you know a single person will need about £43,900* a year for a comfortable retirement? With the new State Pension paying a maximum of £11,973 per year from April 2025, there’s clearly a gap.
Our guide provides you all the information you need to make sure you’re ready for the future you want.
*Source: Pension and Lifetime Savings Association - UK Retirement Living Standards in 2024.
Our award-winning approach
We don’t like to blow our own trumpet, but it's nice when someone else does. We’re also proud to be recognised by Which? as a Recommended Provider for our Self-Invested Personal Pension (SIPP) and Pension Drawdown.
What next?
If you want to open a new pension or transfer an existing pension to Fidelity, then take a look at our Self-Invested Personal Pension (SIPP). It’s a flexible, tax-efficient and easy-to-manage pension designed to help you to reach your pension goals.
Open a pension
- A tax-efficient way to invest for your retirement (subject to limits)*
- Benefit from 20% government tax relief, added to your SIPP account
- If you pay Income Tax at higher than the basic rate, you may be able to claim even more tax relief through your tax return
- Employers can also contribute. Payments from a limited company are considered employer contributions
Transfer a pension
- It’s easy to submit your transfer request online, and depending on your current pension provider your transfer could be complete in ten business days.
- We’ll contact your providers and arrange for your investments (or cash) to be brought into your Fidelity account
- We’ll pay any exit fee (up to £500 per person, T&Cs apply**) that your current provider may charge you
- If you apply to transfer a SIPP through our website, you can track your transfer's progress using our transfer tracking tool.
*Tax relief is only available on the lower of the annual allowance (currently £60,000) or 100% of your earnings in a given tax year (or to £3,600 if you have no earnings). If you exceed your annual allowance you may have a tax charge to pay unless you have unused allowance you can carry forward. If you have earnings of £260,000 or more, the amount you can pay in and receive tax relief on could be ' tapered' down to £10,000. Alternatively, if you’ve already taken taxable income from your pension pot, your annual allowance may be £10,000 (known as the money purchase annual allowance) and you will not be able to use carry forward to contribute to a SIPP.
For more information on tax relief and all the allowances please visit our pension allowances page.
Important information - Before making your decision, please read our pension transfer factsheet. This explains the things you need to consider before you transfer, including fully comparing the benefits, charges and features offered. Pension rules apply. Seek advice from Fidelity’s advisers or another authorised financial adviser if you're unsure.
Already have a SIPP with us?
It’s easy to increase your contributions in line with your changing circumstances. Of course you can decrease them too if you need to, but it’s a good idea to take advantage of the tax relief. You can view your SIPP account online and change the amounts you pay in through your regular savings plan.
Log in to view your accountRemember, you can access your pension at 55 (57 from 2028)
One key benefit of a pension is that you can access your pension at 55 (57 from 2028) so you aren’t tempted to dip in and out until you’re eligible to take your benefits. However, if you want access to your money sooner, there are other account options, such as an ISA, that may be more suitable.
Find out about our ISARelated articles
How to retire at 55
Our guide to starting your retirement earlier
Marianna Hunt
Fidelity International
20 January 2026
The best (and worst) years to retire
How timing affects your income
Ed Monk
Fidelity International
16 January 2026
Important information: This is not a personal recommendation for a product, service or action. If you are unsure about the suitability of pension investments or transfers, or action you need to take, we strongly recommend seeking advice from Fidelity’s advisers or another authorised financial adviser.
