{"id":18193,"date":"2025-04-14T03:21:17","date_gmt":"2025-04-14T03:21:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/18193\/"},"modified":"2025-04-14T03:21:17","modified_gmt":"2025-04-14T03:21:17","slug":"three-pension-tweaks-could-hand-workers-243000-more-in-retirement-personal-finance-finance","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/18193\/","title":{"rendered":"Three pension tweaks could hand workers \u00a3243,000 more in retirement | Personal Finance | Finance"},"content":{"rendered":"

Workers could add a staggering \u00a3243,000 in retirement savings \u2013 simply by making three easy changes to their pension habits, new figures reveal.<\/p>\n

With the State Pension<\/a> climbing 4.1% this week to \u00a311,973 a year, the rise will be welcome \u2013 but it remains far short of the amount needed for a comfortable retirement.<\/p>\n

Now, experts at interactive investor, Britain\u2019s second-largest investment platform, are urging savers to take control of their pensions \u2013 with three modest tweaks that, over a working life, could make a life-changing difference to their retirement pots.<\/p>\n

Work for a boss who pays more into your pension<\/strong><\/p>\n

A worker earning \u00a335,000 could see their pension boosted by \u00a3116,700 just by switching jobs to an employer who pays 5% into their pension instead of the minimum 3%.<\/p>\n

Those earning \u00a360,000 or \u00a3100,000 could bank an even bigger bonus of \u00a3197,700 or \u00a3328,200, respectively \u2013 a difference that could decide the line between comfort and hardship in retirement.<\/p>\n

Use salary sacrifice \u2013 and reinvest the savings<\/strong><\/p>\n

Thousands of workers are still missing out on the benefits of salary sacrifice \u2013 a scheme that lowers your official salary in return for direct pension contributions.<\/p>\n

Not only does this mean lower tax, but basic-rate taxpayers also save 8% in National Insurance, money which can be redirected straight into your pension.<\/p>\n

A worker earning \u00a335,000 and reinvesting their monthly NI saving could grow their pot by \u00a327,600 over 40 years \u2013 and that\u2019s at no extra cost.<\/p>\n

Put \u00a350 of your next pay rise into your pension<\/strong><\/p>\n

Think \u00a350 won\u2019t make a difference? Think again.<\/p>\n

Someone who invests just \u00a350 a month from a pay rise into their pension over 40 years could retire with an extra \u00a398,900.<\/p>\n

And thanks to tax relief, the real cost is just \u00a340 for basic-rate taxpayers \u2013 and even less for higher earners.<\/p>\n

Put all three steps together, and an average earner on \u00a335,000 could retire with \u00a3243,200 more \u2013 a tidy sum that could fund 10 years of luxury travel or help support loved ones.<\/p>\n

The benefits will be even bigger for higher earners. For example, someone with a salary of \u00a360,000 a year could achieve a boost of \u00a3312,400, while someone on \u00a3100,000 could achieve a huge bump of \u00a3454,800<\/p>\n

\u201cIt\u2019s encouraging that you don\u2019t need to be a high earner to make a massive difference to your pension,\u201d said Camilla Esmund of interactive investor.<\/p>\n

\u201cSomething as simple as filling in a salary sacrifice form or checking your employer\u2019s pension policy before taking a job could add tens of thousands of pounds over your career.\u201d<\/p>\n

Interactive investor is now urging workers to “dare to compare” their pension fees using a new online tool, warning that hidden charges can quietly erode savings by tens of thousands.<\/p>\n

Craig Rickman, Personal Finance Expert at interactive investor, added: \u201cThese aren\u2019t complicated strategies. But together, they could transform how you live in retirement \u2013 particularly for those on modest incomes.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Workers could add a staggering \u00a3243,000 in retirement savings \u2013 simply by making three easy changes to their…\n","protected":false},"author":2,"featured_media":18194,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,2074,3463,2096,2095,2499,1786,16,15],"class_list":{"0":"post-18193","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-pension","11":"tag-pension-2025","12":"tag-pension-latest","13":"tag-pension-news","14":"tag-personal-finance","15":"tag-state-pension","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114334170052422542","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/18193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=18193"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/18193\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/18194"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=18193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=18193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=18193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}