Tips on saving money
Samantha Gould, head of campaigns and financial adviser at pension provider NOW Pensions, offered tips to help with savings.
Since 2012, company employees started being auto-enrolled into workplace pensions.
It means a percentage of a worker’s monthly salary is taken away and put towards a retirement pot.
Your employer has to contribute a minimum amount as well, and the employee’s contribution, usually 5%, includes tax relief from the government.
Samantha said even though it could be tempting to opt out of yours for more money in the short-term, doing so would be a bad idea in the long-term.
“Workplace pensions are brilliant because it’s not just your own money but your employer is contributing as well,” she said.
“In terms of building up the value of a pot, it’s a lot more cost-effective and easier to build up significant amounts of money rather than if you took out a pension yourself.”
While the legal minimum employers have to contribute is 3%, some offer more than this if you’re willing to up your monthly contributions.
Of course, you should only do this after you’ve budgeted and know you have enough money coming in each month.