Many people saw a heightened awareness of personal finances in 2024. But this also brought a number of misconceptions and misunderstandings surrounding pensions.

Helen Morrissey, head of retirement at Hargreaves Lansdown, tackled the four most frequently asked pension questions of 2024. And she started with how much the state pension is worth.

This varies depending on your birth date, how much National Insurance contributions you’ve made and retirement age, which determines whether you’re on the old or new state pension system. The new state pension increases every April and currently stands at £221.20 per week, while the full basic state pension offers £169.50.

Beyond the state pension, many people were trying to answer the question “how much pension will I get” from their personal or workplace pots this year. Helen highlighted that this can vary greatly between individuals.

However there are numerous online pension calculators available to help you determine how much you’ll need for a comfortable retirement versus how much you’ll have if you continue saving and investing at your current rate.

The expert cautioned when discussing pension calculators: “Remember though, this will just be an example figure and could be different to how much you actually get.” The public’s focus on pensions has been evident this year, with many searching for “how to find an old pension” amid the realisation that it’s surprisingly easy to lose track of pension pots, especially when frequently changing jobs due to automatic enrollment.

Reclaiming these lost funds can provide a substantial boost to retirement savings. Helen suggested: “If you’ve lost track of a pension, contact the government’s Pension Tracing Service. All you need is either the name of your employer or your pension provider.”

In light of the Chancellor’s announcement that certain pensions will now be subject to inheritance tax, questions like “what happens to my pension when I die?” have become more prevalent. Individuals have the option to designate a beneficiary for any remaining pension funds after their death, which should be arranged with the pension provider and specified in the will.

The fate of the pension also depends on its type and how it was managed during the owner’s lifetime. For instance, if the pension pot was untouched, in drawdown, or accessed via lump sum withdrawals, the heir typically has the choice to either receive the funds directly into their bank account or assume ownership of the pension.