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Pension savers 'missing out on top-ups'
Pension savers 'missing out on top-ups'
This is a duplicate of the Blog Entry made on: 17th June 2017 14:24
This is a duplicate of the Blog Entry made on: 17th June 2017 14:24
Workers are missing out on pension top-ups from their employers by only saving at a minimum level, research suggests. Many larger firms offer to "match" additional pension saving by their employees, by adding a contribution when workers save more. But insurer Royal London said that many workers were unaware of the option, and failed to take advantage. This could make a difference of hundreds of pounds in retirement income, it said.
Awareness
Despite having to make a number of assumptions in calculations, Royal London has estimated that an estimated £2bn of employer pension contributions would be available if workers took up the option of saving to a maximum rather than minimum level. It estimated that 3.2 million workers could receive an extra £650 per year each. That would mean somebody on average earnings who chose to take up an additional 3% matched contribution to their pension pot would receive a retirement income of £22,500 rather than £19,050, thanks to the extra contribution and tax relief.
Read more here
Awareness
Despite having to make a number of assumptions in calculations, Royal London has estimated that an estimated £2bn of employer pension contributions would be available if workers took up the option of saving to a maximum rather than minimum level. It estimated that 3.2 million workers could receive an extra £650 per year each. That would mean somebody on average earnings who chose to take up an additional 3% matched contribution to their pension pot would receive a retirement income of £22,500 rather than £19,050, thanks to the extra contribution and tax relief.
Read more here