For many employees, a workplace pension is the largest asset they will ever own after a home, yet most know very little about it. Contributions come off pay each month and appear as a line on the payslip, and then nothing happens until retirement or a change of job. A few questions, asked once, will tell you a great deal about whether the scheme is working for you.

What kind of scheme is it?

The most common kind is a defined contribution scheme, where you and your employer pay in set amounts and your final pension depends on the contributions and the investment returns. A defined benefit scheme promises a pension based on salary and years of service, and the employer carries the risk. Ask which one yours is, because the questions that follow differ.

How much goes in, and who pays?

Ask what percentage you contribute, what percentage your employer contributes, and whether the employer matches extra contributions you make. If the employer matches, contributing at least up to the match is usually worth it, because it is effectively extra pay. Ask whether contributions are on basic pay or on total pay.

What is the tax treatment?

Contributions to a registered scheme can reduce your taxable pay up to a limit, which makes saving through a pension more efficient than saving from take-home pay. Read pension contributions and tax relief for employees and test the effect with the tax reliefs calculator. Ask also whether contributions above the limit are taxed.

What are the charges?

Pension schemes charge fees for administration, fund management and sometimes advice. Even small percentages compound over decades and can take a large share of your savings. Ask for the total expense ratio in writing, and compare it with other schemes. If the charges seem high, ask your employer why.

How is the money invested?

Find out who manages the fund and what it invests in: government securities, shares, property or a mix. Ask whether you can choose between funds, for example a more cautious option as you near retirement. Ask how performance is reported and when. A statement once a year should show your contributions, the returns and the balance.

When do I own the employer's contributions?

Some schemes apply a vesting period, which means the employer's contributions belong to you only after a certain number of years. If you leave before, you may lose part of them. Ask when you become fully entitled, and keep this in mind when you consider changing jobs. What to do when you change jobs lists what to check on the way out.

What happens if I leave?

Ask whether you can leave your savings in the scheme, transfer them to another scheme or take them out, and what the tax is on each choice. Withdrawal rules and tax have changed in recent years, so read pension withdrawal tax: what changed and use the pension lump sum tax calculator to see the effect of taking a lump sum.

What happens at retirement?

Ask at what age you can retire, how much of the pot you can take as a lump sum, and how the rest is paid. Some schemes require you to buy an annuity, others allow a drawdown. The choice affects your income for the rest of your life, so understand it long before you retire.

What if the employer fails to pay?

Employers must pay deducted contributions into the scheme. Ask how you can confirm payments are being made, and what happens if they are late. Check your statement against your payslip. How to check your NSSF, SHIF and Housing Levy are being paid uses the same approach for statutory contributions.

Who regulates the scheme?

Registered retirement schemes are regulated, and trustees look after members' interests. Ask who the trustees are and how members can contact them. If you have a complaint, there are channels to raise it.

Do not forget the statutory scheme

The NSSF is separate from any workplace pension. Read NSSF contributions explained to see how it fits with private savings. Add everything up, and use the gross to net salary table to see how your contributions affect take-home pay. A pension is a long game, and informed questions today make a large difference in retirement.

See also personal relief and tax reliefs for employees explained, read your payslip line by line and the annual PAYE and payroll summary.