11 November 2025
How to read your pension annual statement without drowning in jargon
Charges, projected pots, and risk ratings explained in plain English for UK savers reviewing their workplace scheme.
By Eleanor Mair
Most UK workplace pension statements arrive once a year and then sit unopened. That is understandable — the tables look dense — but a twenty-minute read can tell you whether contributions are on track and whether charges are quietly eroding growth.
Start with the opening balance, contributions (yours and your employer's), and closing balance. If your salary rose mid-year and contributions did not, ask payroll why. Then find the projected pot figures at selected retirement ages; these are illustrations, not promises, yet they show whether your current saving rate supports the lifestyle you have in mind.
Look next at the total expense ratio or annual management charge. Anything above roughly 0.75% for a default fund deserves a question, especially if you have been auto-enrolled for several years. Finally, check the risk rating. If you are within a decade of drawing income and still in a high-equity lifestyle fund, ask whether lifestyle switching has begun.
Bring the statement to a pension review if the numbers raise more questions than answers. A short, focused meeting often clarifies more than another hour of online research.