This is a great reminder to review your company pension contribution. Last week I was presenting to a room of employees and I asked "who is contributing the maximum?". Only one person said yes. Most didn't know and others had chosen to contribute the minimum. Now this was a very generous company. They double everything an employee pays in up to 4%. So if 4% is paid in, they pay in 8%. Buy one, get two free!!
The conversation then moved on to "why were people not paying in more?" and mostly it was because they didn't stop to think about it. I challenged everyone in the room to increase their pension contributions to the maximum. Will you take the challenge too?
A pension is a long-term investment. The fund value may fluctuate and can go down.
Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation. Past performance is not a reliable indicator of future performance.
Employees at larger companies could be missing out on £2bn every year by failing to take their employers’ maximum contribution to their pension. There could be around 3.2 million people losing out. In many workplaces, workers pay a standard percentage of their salary into their pension with the employer matching that. But, particularly in large companies, employees can access valuable additional contributions if they choose to contribute beyond the minimum level.