Pension Advice for 45 Year Olds
At 45, your pension priorities are seriously assessing whether you are on track. With 15-20 years to retirement, there is still time to make a meaningful difference, but action is needed now.
How Much Should You Have Saved at 45?
A common benchmark is to have 6x your annual salary saved in your pension by age 45. On a median UK salary of £35,000, that means approximately £210,000 in pension savings.
Quick check: If you are in your 40s with less than £210,000 saved, consider increasing contributions. Even an extra £100/month makes a significant difference over time.
Key Priorities at 45
- Get a pension forecast and compare it to your retirement income target
- Consider salary sacrifice to maximise tax and NI savings
- Review all your pension pots and consider consolidation
- Think about your target retirement age and whether it is realistic
Frequently Asked Questions
This guide covers the key aspects of pension advice for 45 year olds. The answer depends on your specific circumstances, but the information above provides comprehensive guidance.
For significant pension decisions, professional advice from an FCA-regulated adviser is recommended. The cost is typically recovered through better tax planning and investment strategies.
Initial pension advice typically costs £500-£3,000 depending on the complexity. Ongoing management is usually 0.5-1% per year. Through PensionHelper, our matching service is free.
The annual allowance for pension contributions is £60,000 for the 2025/26 tax year (or 100% of your earnings, whichever is lower). Higher earners may face a tapered allowance.
Basic rate taxpayers get 20% relief automatically. Higher rate (40%) and additional rate (45%) taxpayers claim extra relief through Self Assessment. Salary sacrifice saves National Insurance too.
Currently from age 55, rising to 57 from April 2028. You can take 25% tax-free and access the rest through drawdown, annuity, or lump sum withdrawals.