Pensions expert shares 'start early' message for people in twenties

A pensions expert shared tips.

A pensions expert explained how people can gain by increasing contributions from a young age. Even small amounts can make a big difference if you start early. This is according to Which? pensions expert.

The expert appeared in a video on @Whichuk's TikTok page. The post was titled: 'Three simple ways you can boost your pension.' The expert explained three ways to boost a pension.

Increasing contributions can make a big difference over time, especially if you start early. For example, if you earn £25,000 and increase contributions from 5% to 7% from age 22, you could get an extra £52,000.

If you contribute 8%, you could get an extra £79,000 by age 68. Some employers will match your contributions, which will further boost your pot.

Holly urged viewers to get every pound they are entitled to. Basic rate taxpayers usually get tax relief added to their pension contributions automatically.

If you want to top up your pension by £100, you'd only need to pay in £80. The government would add £20. Higher or additional rate taxpayers may need to claim extra tax relief.

Sacrificing part of your salary can boost your pension pot and reduce National Insurance. It's not about rituals, but a brilliant way to boost your pension.

There's currently no limit on the amount you can pay into your pension using salary sacrifice. From April 2029, an annual cap of £2,000 will apply.

The tips could make a difference to your retirement savings.

Which? wrote that three simple pension changes could make a major difference to your retirement savings. Cutting or stopping payments can cost you in the long run. It's better to keep paying.

If you can afford to make extra contributions, it could significantly boost your pension over the long term. For example, after receiving a bonus.

Making extra contributions can boost your pension.

COPYRIGHT DISCLAIMERS

4English does not own the rights to this content. All rights belong to the owner. 4English only uses this content to help users learn English via the app's features. Contact to request the removal of your content: contact@4englishapp.com.

تدريب الاستماع