If you’ve ever thought “I really should sort my pension” and then immediately put it back on tomorrow’s to-do list... you’re very much in the right place.

Pensions & Prosecco began as an in-person event hosted by me - Katie, a personal finance journalist - and Elizabeth Hawthornthwaite, a wine expert and columnist. We wanted to create a space where pensions could be talked about like real life: clearly, confidently, and without someone standing at a lectern telling you what you “should” be doing.

This newsletter is an extension of that idea.

Each edition brings:

And yes, there will always be a wine recommendation at the end. 

Right - three pension things to clock.

The government has confirmed plans to overhaul Lifetime ISAs (LISAs). New LISAs will be for first-time homebuyers, with the 25% bonus paid when money is withdrawn to buy a property - not monthly, and not for retirement.

If you already have a LISA and use it for retirement saving, you can continue to do so. But the direction of travel is clear: future policy looks set to favour pensions over LISAs for later-life saving.

What this means for you:
If you were considering opening a LISA for retirement, that option may soon be closed. And if you’re self-employed - a group for whom LISAs have worked particularly well - this shift is worth watching closely.

Your next step:
If your LISA is earmarked for later life, compare it with your pension: pensions still come with upfront tax relief while LISAs provide a 25% bonus but different flexibility - future rules changes could affect how attractive each option is.

If your LISA is a core part of your retirement plan, this is a good moment to sense-check whether it still fits your long-term strategy.

Around 800,000 higher-earning workers are failing to claim pension tax relief they’re entitled to - simply because it isn’t automatic. The average amount being missed? Around £1,750 per person. Not pocket change.

It happens because personal pensions and some workplace schemes operate on what’s known as “relief at source”. That means basic-rate tax relief (20%) is added to your contribution automatically - but if you pay higher-rate tax (40% or 45%), you need to claim the extra relief yourself via self-assessment.

Not all workplace pensions operate this way - some give higher-rate relief automatically - which is why checking how yours is set up matters.

What this means for you:
If you earn over £50,270 and pay into a pension where contributions are taken after tax, it’s worth checking whether you need to claim extra tax relief. 

Worth doing:
If you’re a higher-rate taxpayer, check how your pension contributions are structured. In “relief at source” schemes, only basic-rate relief is added automatically - you must claim the rest. You can backdate claims by up to the last four tax years.

It’s one of the few areas where a small admin check can result in a four-figure boost to your retirement pot.

Employers are meant to continue paying pension contributions based on your normal salary - even if your maternity pay is lower. Some aren’t.

What this means for you:
If you’ve been on maternity leave in recent years, your pension pot could be smaller than it should be - and small shortfalls compound over time.

Worth checking:
Look at employer pension contributions on payslips before, during and after maternity leave and check historic statements if you’re already back at work. If something looks off, it’s worth querying - even retrospectively.

If a mistake isn’t resolved, there are formal routes - including the Pensions Ombudsman or the Pensions Regulator - to pursue corrections.

Britain’s biggest DIY investment platform Hargreaves Lansdown has cut charges on its ready-made pension. This isn’t a call to switch - just a reminder that fees matter.

Why we’re reminding you:
Even small fee reductions can add up to thousands of pounds over decades and many people have never checked what they’re paying.

Pensions&Prosecco says:
Once a year, check what you’re paying and whether your pension setup still suits you. As a broad rule of thumb, more than 1% if you are not paying for advice is considered expensive. If you are receiving ongoing advice, total costs around 1.75% are common - but it’s worth understanding what you’re paying for.

Vernaccia di San Gimignano

Elizabeth says: Vernaccia di San Gimignano is one of the most underrated white wines in Italy. Lemon peel, pear, almonds, wild herbs and a fresh, salty finish - the kind of wine that quietly wins you over and then refuses to leave your glass.

I highly recommend drinking while pretending you’re not thinking about pensions anymore.

That’s it for this first edition. More pension housekeeping next time. Fewer acronyms. Always something decent in your glass.

Katie & Elizabeth 🥂

If this was useful, forward it to someone who keeps saying they’ll “sort their pension soon.” Or send them here to sign up - we’ll take it from there.