Help & support Register for PlanViewer
Skip Header

The time is now

Eat, sleep, repeat: how your pension grows

Eat

Each month you feed your pension savings by investing through contributions. 

They come straight out of your pay and in most cases both you and your employer help feed it.

Sleep

You can relax now. The money you’ve invested is hopefully busy growing in value over time. And any growth on your investments is added to the pot. Remember, growth is not guaranteed.

Even though this bit is taken care of for you, you should keep an eye on what’s happening with your pension. It’s your money, and future, after all.

Repeat

Now you’ve got your new total pension - what you or your employer put in with any growth it achieved added to it. And then it’s time to feed it again. A new contribution amount goes in, and this time any growth that may be achieved is on your new total pension savings. Basically, you’re seeing growth on what you’ve invested and any previous growth you’ve achieved. It’s called ‘compounding’ and it’s why investing sooner is better. Remember, this is an example and growth isn't guaranteed.

It’s important to remember that the value of investments can go down, as well as up - so you may get back less than you invest. However, probably the single most important principle of investing is that the longer you hold an investment, the more likely it is to deliver a positive return. Another reason to start early.

When you start investing is more important than how much

When it comes to building up your pension, the length of time you invest for could have the biggest impact on how much your pension could be worth when you reach retirement.

For example, if you were to invest £100 a month for forty years, you'd save £48,000 into your pension. Over that time, your pension could grow by over £105,000 (assuming an average investment growth of 5% a year, before charges). This would give you over £153,000 to enjoy in your retirement.

However, if you were to save the same amount in total but started saving later so that your pension savings only had twenty years to grow, you'd end up with £70,689 less to enjoy in retirement.

Five quick wins

Start now

It’s always a good idea to start saving early. As we saw in the example, even a small amount now could make a big difference to your future.

Know your numbers

Check how much your employer contributes towards your pension savings (it’s usually in your contract). Find out if they offer to pay more if you contribute (and, if you can, take them up on it).

Keep going

Retirement is a long way away and there will be a lot of things to save for over the years. But remember, whatever your dreams and goals are, retirement is something we all need money for.

Top up

Over the years you’ll hopefully get pay rises and maybe even bonuses. If you can, increase your contributions. This will give you the opportunity of having a lovely nest egg for your retirement.

Keep track

Having all those savings is one thing. But if you move and don’t tell your pension provider, you might lose track of what money you invested and where. And after all, it’s your money.

Download the Fidelity PlanViewer app. It’s safe and secure without having to remember any passwords, as it logs you in using fingerprint and facial recognition.

Policies and important information
 

Accessibility | Cookie policy | 2023 Corporate Sustainability Report | Diversity, Equity & Inclusion Reports | Financial crime | Governance | Legal information | Modern slavery statement | Privacy statement | Regulators and regulatory disclosures | UK tax strategy | Whistleblowing programme | Mutual respect policy
 

This information is not a personal recommendation for any particular investment, you are responsible for deciding whether an investment is suitable for you. In doing so, please remember that past performance is not a guide to future performance, the performance of funds is not guaranteed and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. You should regularly review your investment objectives and choices and if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser.
 

This website is issued by FIL Life Insurance Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales No. 3406905, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP. Fidelity, Fidelity International, the Fidelity International logo and the F symbol are trademarks of FIL Limited.

© FIL Limited 2026