Pension ‘wingers’ could miss out on £95,000 in retirement – Standard Life

The remaining 10% of respondents were not placed in any group.

Standard Life estimated that someone paying minimum contributions from age 22 could build a pension pot of around £252,000 by age 68.

Increasing the employee contribution from 5% to 6% could raise this to £283,000. 

An 8% employee contribution could produce £347,000, around £95,000 more than minimum contributions.

The calculations assumed a £30,000 starting salary, annual salary growth of 3.5%, annual investment growth of 5%, inflation of 2% and a 0.75% annual management charge. 

Emma Furlonger, managing director for workplace pensions at Standard Life, said: “Most of us can probably recognise a bit of the Winger in ourselves. 

“Retirement can feel a long way off and there are plenty of more immediate demands on our money, so it can be easy to leave a pension ticking away in the background without giving it much thought.

“Of course, few people fit neatly into a single pension personality, and many of us will recognise aspects of several of them at different stages of our lives.”

Furlonger added: “But understanding the habits and behaviours that influence how we engage with retirement saving can be a helpful reminder to take stock and check whether we’re doing enough for our future selves.

“You don’t need to become a pension expert to make a difference. 

“Simply knowing roughly what you’ve saved, checking what you’re paying in and seeing whether you’re on track are all useful places to start.”

She said: “Taking small steps to engage with your financial future today can lead to better outcomes later on. 

“Our analysis shows that increasing contributions by even one percentage point early in your career could add thousands of pounds over time.

“If you’re more of a Late Bloomer, the message isn’t that you’ve missed the boat.”

She added: “Everyone’s journey to retirement is different, but starting to pay attention today can still make a meaningful difference, and Pension Engagement Season is a good prompt to check in. 

“A few minutes spent looking at your pension today could be something your future self is very glad you did.”