This is about keeping up with inflation.
If you’re a deferred member of a defined benefit pension scheme – like a final salary scheme – your pension will increase in value to make sure you’re still in line with inflation.
Revaluation doesn’t apply to defined contribution schemes, like The People’s Pension, so it’s a good idea to think about what kind of income you think you’ll need during your retirement. You should also regularly review whether you’re contributing enough to your pension savings to give you the best chance of getting that income. You should speak to a regulated financial adviser if you need help.
We’re not authorised to give you advice, but you can read more about your guidance and advice options on our website.