Starting a pension at 30 in the UK: what’s the process?

Can I start a pension at 30?

Starting a pension at 30 is an excellent idea.

Many of us will have nearly 40 years of working life ahead of us at this age, giving us plenty of time to benefit from investment growth, employer contributions and generous tax breaks to build a nest egg for our old age.

When you pay money into your pension, the government adds back the income tax you’ve paid on it, either straight into your pension or by paying it back to you when you fill in your tax return.

For basic-rate taxpayers, the UK government automatically tops up your contributions with 20% tax relief. If you’re a higher-rate taxpayer, you can claim an additional 20%, bringing your total relief to 40%. Additional-rate taxpayers can claim up to 45% tax relief on contributions.

This tax relief makes a huge difference to how your pension grows, as over time the returns you make earn returns of their own, which is a snowball effect that means that your pension grows faster and faster.

At present, retirees can take money from their private pensions at 55, soon to rise to 57, so you will have more than a quarter of a century of savings to compound if you start a pension at the age of 30.

How big a pension do I need?

Everyone’s situation is different when it comes to retirement finances, but the Pension and Lifetime Savings Association’s (PLSA) Living Standards aim to give an idea of how much money you might need in retirement depending on your planned lifestyle.

They suggest that a single person might need the following amounts every year.

• £13,400 a year for a minimum retirement: This would cover basic needs and some cheaper leisure activities. A couple would need £21,600 between them for a minimum retirement.

• £31,700 a year for a moderate retirement: This would cover eating out a couple of times a month, plus an overseas holiday and a UK break every year. A couple would need £43,900 between them for a moderate retirement.

• £43,900 for a comfortable retirement: This would cover more long weekend breaks and other spontaneous activities and leisure spending. A couple would need £60,600 between them for a comfortable retirement.

To create these levels of income, you can combine money from your private pensions with your state pension. The full new state pension is due to rise to  £12,547.60 a year in April 2026, and continues to increase over time.

The PLSA calculates that you’ll need a pension pot of between £330,000 and £490,000 to have a moderate retirement as a single person.

The good news is that if you start in your 30s, your money will have time to grow to reach this level.

Find out if you're saving enough with Unbiased’s pension calculator.

How much should I have in my pension at 30?

According to statistics published by the government’s official data provider, the Office for National Statistics (ONS), the average pension for someone aged between 35 and 44 is £39,500, while for those aged between 25 and 34, the total average amount in a pension pot is £18,800.

If you’re only just starting a pension at 30, though,  there’s still plenty of time to build a pot by taking advantage of every option and opportunity. 

If you start a pension at 30, you can use these strategies to maximise the amount of money you put in.

Max out your workplace pension

If you’re employed, the first thing to do is to look at your workplace pension.

In some cases, employers will pay more into your pension if you increase your own contributions, which is called contribution matching.

This is effectively free money, so if you can up your own contributions as much as possible, it will help your money to grow.

Use a salary sacrifice scheme

If your employer offers a salary sacrifice scheme, this can turbocharge your pension.

Under salary sacrifice, you give up part of your salary in exchange for a larger pension contribution from your employer. 

Use personal pensions

If you don’t have access to a workplace pension or want more flexibility, personal pensions are an excellent option. There are several types of these, including self-invested personal pensions (SIPPs).

A SIPP lets you choose where your money is invested, giving you control over your pension. While it doesn’t come with employer contributions, it does offer flexibility.

Catch up on contributions

Most people have a £60,000 annual allowance they can pay into a pension each year.

Carry forward rules allow you to also use the allowances for the previous three years, as long as you were a pension scheme member during those years.

If you haven’t contributed as much to your pension as you could have in your 20s, you might want to take advantage of these to contribute more in your thirties to grow your pension further.

For higher earners, the pension annual allowance reduces as your income increases.

This tapering means the amount you can contribute while still benefiting from tax relief may decrease.

It’s important to be aware of this if you are a higher earner, so you may wish to take financial advice.

What are some investment strategies for starting a pension at 30?

Use these strategies for investments when you start a pension at 30.

Take the right amount of risk

When starting a pension at 30, finding the right balance between risk and growth is important.

A mix of growth assets, such as equities and more stable investments like bonds, can help you achieve steady growth while protecting your savings.

You don’t want to be too conservative and miss out on potential returns, especially when you have many years until retirement. 

You can work with a financial adviser to find an investment strategy that fits your retirement goals and timeline.

Spread your risk by diversifying

Diversification is key to spreading risk.

If your pension is invested in a range of asset classes, such as stocks, bonds, real estate, and commodities, it is likely to be less volatile in terms of performance, as if one area does badly, it is balanced out by the performance of other assets.

Talk to a financial adviser 

Getting your pension right is important in your 30s, as you’ll want to set a steady course towards retirement.

A qualified financial adviser can help you to do this.

Review regularly

Once you’ve started investing, it’s important to regularly review your pension. Keep an eye on performance and make adjustments as needed. 

Who are the best pension providers for me?

When looking to start a pension at 30, there are several top providers to consider.

For workplace pensions, look at providers such as Nest or Aegon. If you’re considering a SIPP, interactive investor, Vanguard, and Bestinvest are highly rated and offer competitive options with flexible investment choices. 

Each provider has its strengths, so it's essential to compare fees, investment options, and customer service to find the best fit for you.

Get expert financial advice

If you haven’t started a pension yet and you are in your 30s, you’ll want to act as quickly as possible. The more you can prioritise retirement saving when you are young, the better, as it gives your money time to work.

Let Unbiased match you with a professional financial adviser who can guide you through starting a pension at 30 and help you create a tailored plan for a secure retirement.