Saving for retirement should be a top priority for all, but it seems that many here in the UK are failing to put as much in their pension pot as they could be each year.
New research from mutual insurer Royal London has just revealed that more than three million people who work for bigger companies are seemingly unaware of additional matching contributions that are available to them if they decide to save beyond the minimum amount.
The analysis found, in fact, that workers aren’t taking up approximately £2 billion annually which employers have offered to contribute to workplace pension schemes.
Steve Webb, director of policy with Royal London, commented on the findings, saying: “At a time when money is tight for many people and pay rises may be limited, getting your employer to contribute more to your pension can be a very cost-effective strategy. When individuals are thinking about where to put their money to get the best return, the chance to more than double your money through an employer contribution and tax relief from the government takes a lot of beating.”
This comes as the organisation warns that the latest squeeze on household incomes will mean that more of your pay packets will be used to fund everyday costs – which will result in a “sustained decline in the household savings rate as people put less aside”, personal finance specialist Helen Morrissey said.
For further help and advice relating to your pensions, call pension review service The Pension Place today.