Help your people plan for retirement: The 6-step pension challenge

At Benifex, we are proud to once again sponsor ‘Pension Awareness Day’. As it approaches, we wanted to highlight the Pension Awareness Day ‘6-Step Pension Challenge’ — a simple, quick, and impactful way for people to make meaningful progress with their retirement planning.

As an employer, you can help your people take control of their future by sharing these six practical steps. Whether they’re just starting their career or already thinking about retirement, encouraging them to take on the challenge will help them feel more confident, informed, and financially prepared.

Step 1: Establish pot size

The first step is getting a clear picture of where things stand. Encourage your people to gather details of all their pensions — workplace, personal, and state — so they know what they’ve already saved.

Many people are surprised to discover just how much (or how little) they’ve saved. Pension statements, provider apps, or a quick check with HR can help reveal the current value. For those with a defined contribution pension, it’s worth remembering that the eventual payout will depend on both contributions made and investment performance.

Step 2: Track down lost or forgotten pots

It’s easy for pensions to get left behind when changing jobs. Help employees understand how to track them down — through old paperwork, by contacting previous employers, or via the government’s Pension Tracing Service. Reuniting with lost pots could make a significant difference to their retirement income.

Step 3: Estimate future needs

Next comes setting a target. Ask people to think about what their lifestyle might look like in retirement. Separating essentials (like bills) from nice-to-haves (like holidays or hobbies) can make it easier to plan.

The UK’s Retirement Living Standards are a useful benchmark — they set out what’s needed for a minimum, moderate, or comfortable retirement. Plugging in their own numbers gives employees a sense of what they’ll need to aim for.

Step 4: Compare now vs. future needs

With their current pension total and projected retirement needs in hand, employees can compare the two to see if they’re on track, or if there’s a gap.

Most workplace pension providers offer handy calculators and modelling tools in their apps or portals. These often allow employees to combine information from different pensions, giving a more complete picture.

If they’re not yet registered with their provider’s online services, now is a great time to get started.

Step 5: Take action to close the gap

Discovering a gap can feel daunting, but there are always steps employees can take:

• Increase contributions where possible — even small boosts add up over time.
• Make the most of employer contributions and employer matching schemes — they’re effectively free money.
• Review investment choices — some people may be comfortable with more risk in return for potentially greater growth (though returns are never guaranteed).
• Use calculators and Retirement Living Standards to see how even small changes can have a big impact.

Step 6: Update beneficiaries

Finally, it’s important to make sure pensions go to the right people. Encourage employees to check and update their nominated beneficiaries. Without this, providers or trustees could make the decision on their behalf. Updating the form only takes a few minutes but can make all the difference for loved ones.

Encourage your people to take the challenge

Don’t let pensions sit on the “one day” list. The 6-Step Pension Challenge is designed to be approachable and give people a clearer view of their financial future – and giving them confidence that they’re taking the right steps toward retirement.

And encourage employees to check out Pensions Awareness’ popular live shows – which are returning from 15-17 September. These sessions are free, impartial, and packed with straightforward pensions information.