National Financial Awareness Day: 3 surprising facts about pensions every woman needs to know

While you may feel on top of your day-to-day finances, checking in on your pension could be more of a rare occurrence.

Indeed, reviewing your pension may feel less urgent than other financial priorities, such as saving for short-term goals like buying a home.

That said, your pension could be one of the more important aspects of your financial plan.

This is especially the case if you’ve experienced a major life change, such as divorce, becoming a widow, or taking time off work to care for loved ones.

Events like these can significantly affect how much you save for retirement. In fact, Legal & General (6 April 2026) reports that the gender pension gap begins at the start of a woman’s career, and the average UK retirement fund for over-55s holds:

• £156,000 for men
• £81,000 for women.

Thankfully, understanding a few facts about pensions can help you feel more confident and informed.

And, with National Financial Awareness Day occurring on 14 August 2026, this could be the perfect opportunity to take stock of these three surprising pension facts every woman should know.

1. You can carry forward your Annual Allowance to significantly boost your pension

If there have been periods of time when you didn’t contribute as much to your pension as you would have liked, you could benefit from the “carry forward” rule.

As of 2026/27, the Annual Allowance – the maximum amount you can put into a pension without triggering an additional tax charge – stands at £60,000. Just note that if you’re a very high earner or have already flexibly accessed your pension, your Annual Allowance may be tapered down.

Carry forward rules allow you to potentially use any unused pension Annual Allowance from the previous three tax years.

This could be useful if your circumstances have changed recently. For instance, you might have:

• Received an inheritance
• Returned to work after a career break
• Finalised a divorce.

If you haven’t made full use of your Annual Allowance in previous years, the carry forward rule in these situations could allow you to make up for earlier gaps in saving, potentially reducing the risk of a shortfall later in life.

However, the rules can be complex, so I can offer professional guidance to ensure it’s the right choice for you.

2. Deferring your State Pension could increase your retirement income later in life

Once you reach the age of 66 (rising to 67 by 2028), you can typically start accessing your State Pension entitlement.

However, you don’t necessarily have to claim it, and deferring could mean you receive more when you eventually do.

The full new State Pension is worth £241.30 a week in 2026/27, equating to just over £12,500 a year.

Yet, your weekly payments typically increase by 1% for every nine weeks you defer. This means that if you defer your State Pension for an entire year, it will increase by just under 5.8%.

This could be a practical option if you have other sources of income available in the early years of retirement, such as earnings from part-time work, rental income, or savings you can draw on temporarily.

If you plan to continue working beyond the State Pension Age, delaying your entitlement could allow you to build a larger guaranteed income for later life.

Or, if you divorce later in life and receive pension wealth as part of your settlement, you could use this in the short term and defer your State Pension.

Of course, deferring isn’t always the right choice, and before making a decision, it’s vital to consider:

• Whether you can comfortably cover your living costs
• How deferring might increase your Income Tax liability when you start claiming
• Whether a higher guaranteed income later in life would improve your long-term financial security.

Still, thinking carefully about how your State Pension fits into your retirement plan could help you make the most of it.

3. You may have lost pension pots lying unclaimed

Over the course of your career, you may find that you have built up several different pension funds with various providers if you’ve:

• Changed jobs several times
• Moved house
• Taken a career break
• Lost track of paperwork over time.

Indeed, the Actuary (30 April 2026) states there were more than 3.3 million lost UK pension pots in 2024, worth a total of £31.1 billion.

While one forgotten pot might not seem like it would significantly affect your retirement income, several small pots could quickly add up.

Moreover, if these funds have remained invested over many years, they could have grown more than you expect.

So, tracking down these old pensions could help you build a clearer picture of your retirement savings and determine whether you’re on track to achieve your desired lifestyle.

A helpful first step is making a list of:

• Every employer you’ve worked for
• Any pension providers you remember receiving paperwork from
• Previous addresses where pension information might have been sent
• Your National Insurance number
• Any old payslips or pension statements you still have.

Then, you can use the government’s Pension Tracing Service to find contact details for workplace pensions.

When you’ve tracked down any missing pots, you can request up-to-date information, such as how much they’re worth, where they are invested, and who is named as the beneficiary if you pass away.

The last point is especially vital if you’ve divorced, as your previous beneficiaries may no longer reflect your wishes.

Get in touch

I am highly experienced in helping clients manage their pension wealth and work towards their dream retirement lifestyle.

To find out more about how I can keep you informed this National Financial Awareness Day, please get in touch by emailing lottie@truefinancialdesign.co.uk or calling 07824 554288.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment; the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.

Workplace pensions are regulated by The Pensions Regulator.

Approved by 2plan wealth management Ltd on 09/06/2026