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Saving for retirement in your 40s

You’ve probably been saving for a while now and it's likely you've accumulated a number of employer pension pots over the years. This can be a good time to take stock of what you have, and make the most of the opportunity still open to you. If you haven’t really given a thought to retirement yet, there’s still time to make a big difference to your pension.

Planning your retirement

The first step is to figure out what you might need in retirement, and what your current pensions might provide.

Estimate what you’ll need

Our retirement calculator will help you to compare your income and expenditure in retirement.

Retirement calculator

Estimate what you’ll get currently

Get an estimate of the income you could receive from your pension with an annuity, drawdown or a combination of both.

Pension calculator

What you can do now

Maximise your employer contributions
Set up a regular savings plan
Make a one-off payment
Regularly review your payments
Keep pace with your salary increases
Use your carry forward allowance
Bring your pensions together
Learn how investing can boost your chances

The tax benefits of a pension

  • Investment growth of your savings in your pension is not taxed
  • In a personal pension such as the Fidelity SIPP, we can claim 20% tax relief from the Government and add it to the money you save
  • You can save up to £40,000* a year in your pension and receive tax relief so long as it’s not more than you earned
  • You can claim money off your tax bill if you pay more than the basic rate of income tax.
  • From the age of 55 you can normally take a tax-free lump sum worth up to 25% of your pension

By how much can you boost your retirement savings?

You Pay Government adds Total in your SIPP Claim back up to an extra Effective cost as little as Claim back up to an extra Effective cost as little as
£8,000 £2,000 £10,000 £2,000 £6,000 £2,500 £5,500
£32,000 £8,000 £40,000 £8,000 £24,000 £10,000 £22,000
£80,000 - - £20,000 £60,000 £25,000 £55,000
£104,000 - - £26,000 £78,000 £32,500 £71,500

These examples are not tailored to individual circumstances and are based on the rates of tax relief for residents in England, Wales and Northern Ireland. Rates of tax relief for Scottish Residents differ to the rest of the UK.

Remember, to receive tax relief, your personal contributions can’t be any higher than your earnings. The rate at which you can receive tax relief depends on the rate of Income Tax that is applied to your earnings, which will vary depending on the amount you earn and where you are resident for tax purposes. 

Tax treatment and eligibility to invest in a pension depend on personal circumstances.  All tax rules may change in the future.

Note: your total contribution amount is not the amount you pay in, though in some cases it will be, but rather this is the amount that will be in the pension after the contribution has been made and basic rate tax relief has been added.


Thinking of paying a large contribution?

If you have income of £200,000 or more (including pension contributions from an employer), you need to be aware of the tapered annual allowance - please read our guide for more information.


Thinking of transferring?

To find out what you should consider first, please read our Fidelity SIPP transfer guide.

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 low cost and easy to manage online.

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

  • Transfer your pension to us and we’ll pay any exit fee (up to £500 per person, T&Cs apply**) that your current provider charges you
  • Applying online takes a few minutes, 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
  • You can track your transfer online where you’ll see the status of each transfer request

*Tax relief is only available on the lower of the annual allowance (currently £40,000) or 100% of your earnings in a given tax year. 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 £200,000 or more, the amount you can pay in and receive tax relief on could be ' tapered' down to £4,000. Alternatively, if you’ve already taken taxable income from your pension pot under pension freedoms, your annual allowance may be £4,000 (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.

We make it easy to keep track of your pension savings...

…You’re on your own with the remote!

Fidelity’s Self-Invested Personal Pension (SIPP) has many great features that make it easy to manage your pension savings.

Find out more

Remember that the value of investments can fall as well as rise, so you may get back less than you invest. It’s important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the charges, features, and services offered.

If you are in any doubt whether or not a pension transfer is suitable for your circumstances we strongly suggest that you seek advice from an authorised financial adviser.

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This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.


The value of investments can go down as well as up, so you may get back less than you invest. This information is not a personal recommendation for any particular product, service or course of action. Pension and retirement planning can be complex, so if you are unsure about the suitability of a pension investment, retirement service or any action you need to take, please contact Fidelity’s retirement service on 0800 368 6882, Monday to Friday, 9am - 5pm, or refer to your financial adviser. Eligibility to invest into a SIPP depends on personal circumstances and all tax rules may change in future. Pension money cannot normally be withdrawn until age 55.