Saving 1% more could boost pension pot by 25% – WEALTH at work

Data from WEALTH at work found that saving just 1% more into a pension could boost the final pot by 25%. 

The financial wellbeing experts said many people do not realise how much difference a small increase can make to their retirement savings.

The annual retirement research found nearly half of workers now believe they will never be able to afford to retire, up from two fifths in 2024 and a third in 2023.

Jonathan Watts-Lay, director, WEALTH at work, said: “It’s very concerning that many people are worried that they will never be able to afford to retire. 

“With high living costs, it is completely understandable why some may think that saving for retirement isn’t a priority.

“When speaking to young people, many don’t realise the huge difference a small increase in their pension contributions can make if they start in their 20s, compared with starting in their 30s or 40s; especially if their employer offers to match it.”

Watts-Lay added: “Once we point out that saving an extra 1% now with their employer matching this can result in 25% more in their pension pot at retirement, saving a bit more now makes a lot of sense.

“Small increases can have a significant impact on an employee’s pension savings, but small reductions in pension savings can also make a huge dent.