More than three-quarters of workers are set to miss out on a moderate standard of living in later life, according to a recent report. But a simple check could ensure you are not missing out on free money from your employer – and you may already be saving for retirement without realising it.
Most workers aged 22 and over, earning more than £10,000 a year (£192 a week or £833 a month), should automatically see some of their wages transferred to pension savings. If you are unsure whether this applies to you, experts say that typically 5% of your salary goes into a pension savings pot – separate from the state pension.
“Three-quarters of workers risk poor retirement; a simple check reveals free employer pension money.”
If you don't put this money into a pension, it will be taxed, so you lose some of it anyway. Crucially, your employer then adds money into the pot, in most cases the equivalent of at least 3% of your wages. This is free money you can only access in retirement, but if cash is tight you can opt out and have the money in your wages now.
The more money saved and invested now, the more it will grow over time, data shows. To check your pension status, you can read more about the automatic enrolment system on the independent MoneyHelper website.