Supercharge your pension by 25%

A new report claims that saving an extra 1% a month into your pension could supercharge your pension pot by 25% when it’s time for you to retire.

Wealth At Work is a financial advice company aiming to help individuals with their financial situation.


The report says the massive increase can be achieved by using your employer’s auto-enrolment scheme which currently requires workers to invest 5% of their salary into a pension.

Employers invest a further 3% on top.

Minimum requirements

A Wealth At Work spokesman said: “But these are just minimum requirements and you can make additional contributions if you want to, while employers are often willing to contribute more if you do the same.

“Combined with the fact that the contributions come out before tax is deducted, and it could give you a bigger pot to live off or the choice to retire early.”


It quoted an example of a 25-year-old worker earning £25,000 who started saving 6% of his salary and would have boosted his pension pot by £15,522 – 12.5% – by the time he retired at 68.

But if the employer agreed to match the increased contributions the pension pot would rise by £31,044 to £155,221 over the years to retirement – an increase of more than 25% than if he had continued paying in the minimum.


Wealth At Work director Jonathan Watts-Ley said: “Many people don’t realise the difference a small increase in their pension contributions can make if they start in their 20s, compared with starting in their 30s or 40s.

“If you can afford to put an extra 1 per cent of your salary into your pension, it will make a significant difference, especially if you start early, and if your employer will match it.”


The auto-enrolment scheme was introduced by the government in 2012 to encourage workers to save for their retirement.

Under the rules all employees aged 22 and over who earn more than £10,000 a year have to take part.

Minimum amount

The minimum amount saved started at just 1% which was matched by the employer. In April 2019 the minimum rate paid by the worker was 3% with the employers adding 2%.

This year the minimum employee contribution is 5% with the employer adding 3%. At the moment there are no plans for further increases.


However, an employee can increase their contribution at any time and can be pro-active in finding out how far the employer will go to match the increase.

Jonathan Watts-Ley said: “The bottom line is that we all need to be saving more for our retirement, not just those who are retiring in the next few years.”