Pension savers warned of 5 simple mistakes that could cost them thousands in retirement

Pension savers are being urged to check for common errors that could leave them out of pocket in later life. Whether you're just starting out or already paying in, small decisions today can have a big impact on your future income. But experts say millions are unknowingly making five avoidable mistakes that could cost thousands over time.

One of the most frequent issues is forgetting about old pensions from previous jobs. Many people have changed employers several times over the years and may not realise they've left money behind. It's estimated there are 3.3 million 'lost' pensions across the UK, worth a combined £31.1 billion. For those aged 55 to 75, the average forgotten pot is £13,620.

Financial experts at Holden & Partners said: "People are often stunned when we show them old pensions worth thousands they didn't even know they had."

They recommend using the Government's Pension Tracing Service to track them down and suggest combining old pots into one plan to make things easier to manage.

Another costly mistake is paying high fees without noticing. Charges of less than 1% might sound small, but over time they can make a big dent in retirement savings.

"A difference of just half a percent in fees could leave you tens of thousands worse off by retirement," experts at Holden & Partners warned.

Checking what you're paying and shopping around for better-value plans could lead to big savings, especially over decades.

Sticking with a default investment fund is another common pitfall. Around 99% of Nest's 13 million members are still in the default fund, which may not match their age or financial goals.

"Default funds aren't tailored to you," Holden & Partners said. "Your age, goals and appetite for risk should decide where your money goes."

Younger savers often benefit from higher-growth funds, while those approaching retirement may prefer safer, more stable options.

Naming a beneficiary is another step many people miss. If you die without one, your pension might not go to the person you'd want. At best, this can delay the process, and at worst, it could go to the wrong hands.

Holden & Partners advise logging into your pension account and filling in an "expression of wish" form, especially after major life events like marriage, divorce or having children.

Finally, pausing payments might seem like an easy way to save money during tough times, but doing so could cost far more in the long run.

"Even paying in a small amount keeps the habit alive and ensures you don't lose valuable contributions," said Holden & Partners. "If you do have to reduce, commit to restarting as soon as you can."

They added: "A few small steps today could mean a much more comfortable tomorrow."

Forgetting old pensions - Millions have lost track of pots from previous jobs, missing out on thousands.

Paying high fees - Even small percentage charges can add up to tens of thousands over time.

Sticking with the default investment fund - These may not suit your age, goals or risk level.

Not naming a beneficiary - Without an "expression of wish" form, your pension may not go to the person you want.

Stopping contributions - Pressing pause means missing out on employer top-ups and tax relief that you can't get back.