Start with the basics
The best retirement saving combines tax relief, employer contributions and time. Pensions are usually the most efficient wrapper thanks to tax relief and (for employees) employer top-ups, but ISAs and other savings play a role too. The right mix depends on your age, work situation and goals.
1. Workplace pension (and employer contributions)
If you're employed, your workplace pension comes with employer contributions and tax relief — effectively free money. Best for all employees: contribute at least enough to get the full employer match, and more if you can.
2. Personal pension or SIPP
For the self-employed or to top up a workplace pension, a personal pension or SIPP offers the same tax relief with flexible contributions. Best for the self-employed (see our self-employed pensions guide) and anyone wanting to save more.
3. ISAs alongside a pension
ISAs offer tax-free growth with full access (no waiting until 55+). Best as a complement to pensions — useful for flexibility or for higher earners who've used their pension allowances.
4. Boosting later in your career
If you start late, higher contributions, catching up using carry-forward of unused pension allowance, and working slightly longer all help. Best for those in their 40s–50s who want to accelerate — it's far from too late.
5. Consolidating and reviewing
Bringing old pots together and reviewing your investment mix keeps savings working efficiently. Best done periodically — see our pension consolidation guide.
A simple plan by stage
- Employed: maximise workplace pension and employer match
- Self-employed: set up a personal pension or SIPP and contribute regularly
- Want flexibility: add an ISA
- Starting late: raise contributions, use carry-forward, review investments
How to build the best retirement plan
A qualified adviser can tailor a tax-efficient retirement plan to your age, income and goals. Find a pension adviser through Nesto — free, no obligation.
Frequently asked questions
What's the best way to save for retirement?
For most employees, maximising a workplace pension (with employer contributions and tax relief) comes first, supplemented by ISAs or a SIPP.
How much should I save for retirement?
A common guide is to save a percentage of income rising with age, but the right figure depends on your target retirement income. An adviser can model it.
Is it too late to start in my 50s?
No — higher contributions, carry-forward of unused allowance, and working a little longer can build a meaningful pot even starting later.
Pension or ISA for retirement?
Pensions usually win on tax relief and employer contributions; ISAs add flexibility and pre-55 access. Many people use both.
What is carry-forward?
It lets you use unused pension annual allowance from the previous three tax years, allowing larger catch-up contributions if you can afford them.