Pensions - Articles - Pension saving bonus could be the best of both worlds

  “The latest ONS data shows that pay, particularly for the lowest paid workers in the UK has seen the highest increase since the 1990s, with an increase of 6.2% for the bottom 5% of earners. Last month the ONS research showed that the average bonus paid in the private sector in the UK last year was around £1,900. Redirecting just some of that pay rise or bonus if possible, into a pension could result in a very welcome ‘bonus’ at retirement.

 “For example, a contribution of £100 a month into a pension for 25 years could result in a pension pot being over £35,000 bigger at retirement.

 “Royal London’s latest Pensions through the Ages research Feeling the Squeeze, revealed that over half (51%) of 35-44 year olds would save more if they had a pay rise. This is one of a number of Savings Moments of Truth or Savings MOTs which could allow people to boost their pensions.

 “These Savings Moments of Truth can really make a difference. There are always other uses for a pay rise or bonus, and often the money is spent before it’s actually been received. But by setting aside just some of a bonus or pay rise into a pension, people could have the funds and income to have a ‘treat’ in the future, as well as today - giving them the ‘best of both worlds’!”