What Employer Contributions can mean to your retirement
While any money you save is a great step to secure your financial future, employer contributions into your workplace pension also make a big difference.
With this extra top-up to your pension pot, you’ll be in a stronger position to enjoy a comfortable and fulfilling retirement.
Extra money from your employer
Employer pension contributions are essentially ‘free money’, or extra pay from your employer, so they can help you top up your retirement savings significantly.
Most people are legally entitled to them
While you can expect to receive a State Pension in later life, this isn’t the only sum of money you’re legally entitled to have.
If you’re aged 22 or above and earn at least £10,000 a year, your employer is required by law to offer and contribute to a workplace pension scheme.
Greater compound growth
With this additional injection of money into your pension pot, the compound interest you benefit from will be greater over the coming years.
Reduced tax liability
Employer contributions to retirement accounts are often made before taxes are deducted, which can help lower your current tax burden.
Peace of mind
Knowing that your employer is actively supporting your retirement plans can make a big psychological difference, and give you confidence that you’re working towards a happy and fulfilling future.
Peace of mind
Knowing that your employer is actively supporting your future can make a big psychological difference and give you confidence that you’re working towards a happy and fulfilling future.
Some employers increase contributions if you save more too
If you increase your pension contributions, your employer might increase what they pay into your pension pot too. Check with your employer to find out.