Millions of workers missing out on thousands of free pension cash – how to get it
MILLIONS of workers could be missing out on free cash worth thousands of pounds in retirement.
When you save cash into your workplace pension, the company you work for pays in too.
There's a minimum amount of cash they have to pay in under auto-enrolment rules.
Employers must contribute at least 3% of your salary, and you have to pay in 5%.
Millions of Brits are now automatically paying into a pension, if they are aged over 22 and earn at least £10,000 a year.
But many companies offer more than the minimum 3% required, giving staff even more "free" cash to save for their future.
To get more than the minimum you'll usually have to contribute more yourself too, and an employer will match it.
The most generous employers even offer matching as high as 10%, if you contribute that proportion of your salary too.
Workers who don't take up this employer matching could be missing out on free cash worth as much as £113k by the time they retire.
That's how much more someone could have if they and their employer put in 10% each, compared to the minimum of 3% and 5%.
Make sure you can afford the money into your pension. Don’t leave yourself short or stretch your finances.
There are limits on how much you can pay into your pension every year, so make sure any extra money you pay in won’t take you over those limits.
You can invest up to 100% of your salary, or £3,600 a year, into your pension, whichever is higher and receive tax relief.
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There’s also a £40,000 annual allowance, which includes contributions made by you, your employer and any third-party contributions, such as tax relief.
If you contribute more than this in a tax year, you could face a tax charge.
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