![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/09\/fcyj57-pension-pot-label-british-769285729.jpg\")
<\/p>\nMILLIONS of Brits could boost their pension pot value at retirement by saving 1% more each month.<\/p>\n
Most Brits have a workplace\u00a0pension\u00a0scheme which helps employees save for their retirement outside of the state pension.<\/p>\n
<\/p>\n
Since October 2012, employers have had to automatically enrol workers into one of the schemes.<\/p>\n
There are minimum contributions that you and your employer must pay.<\/p>\n
A minimum of 8% must be paid into the pension, with you contributing 5% and your employer paying at least 3%.<\/p>\n
But workers should look at boosting the amount that they save into their pot as this could increase their nest egg substantially upon retirement, according to Wealth At Work.<\/p>\n
If both the employee and employer increase their contributions by just one percentage point, the value of a workplace pension pot at retirement could receive a huge 25% boost.<\/p>\n
For example, a 25-year-old expecting to retire at 68 and saving 5% of their \u00a320,000 salary into a workplace pension would have an estimated pot value of \u00a399,341 upon retirement.<\/p>\n
But if they were to increase their contribution to 6% and their employer was to match this increase, they'd boost their total nest egg by \u00a324,836 to \u00a3124,177 at retirement.<\/p>\n
The increase would cost just \u00a312 more per month or \u00a3136 a year.<\/p>\n
<\/span><\/p>\n <\/span><\/p>\n <\/span><\/p>\n <\/span><\/p>\n If the same 25-year-old was saving 5% of a \u00a330,000 salary into a workplace pension, they would have an estimated pot value of \u00a3149,011 upon retirement.<\/p>\n And if they were to increase their contribution to 6% they'd boost their total nest egg by \u00a337,254 to \u00a3186,265 at retirement.<\/p>\n The increase would cost just \u00a317 more per month or \u00a3204 a year.<\/p>\n Those with a higher salary of \u00a340,000 a year saving 5% into a workplace pension would retire at 68 with \u00a3198,683.<\/p>\n But if they were to increase their contribution to 6% and get their employer to increase its contribution they'd boost their nest egg by \u00a349,670 to \u00a3248,353.<\/p>\n You'll need to ask your employer if they'd be willing to match your contributions if you choose to save more than the minimum.<\/p>\n Be aware that your employer doesn't have to match your contributions.<\/p>\n But you can always choose to save more of your income if you want to, even if your employer doesn't match your contributions.<\/p>\n Jonathan Watts-Lay, director of Wealth At Work said: "When speaking to young people, many don't realise the huge difference a small increase in their pension contributions can make if they start in their 20s – especially if their employer offers to match it.<\/p>\n "Once we point out that saving an extra\u00a01% now with their employer matching this can result in 25% more in their\u00a0pension pot at retirement, saving a bit more now makes a lot of sense."<\/p>\n Auto-enrolment is when you're automatically placed into your workplace pension scheme, with your contribution deducted from your pay packet.<\/p>\n Employers have had to\u00a0automatically enrol staff\u00a0into pension schemes since October 2012 to get workers saving for their golden years.<\/p>\n The only exception is if you're under the age of 22 or earn under \u00a310,000, in which case you have to ask to opt in.<\/p>\n But in March,\u00a0MPs backed a private members' bill that would reduce the pensions auto-enrolment age from 22 to 18.<\/p>\n The bill would also abolish the lower earnings limit, which the government has said would encourage employees to start saving for their retirement earlier in their careers.<\/p>\n The change is expected to pass into law at a later date.<\/p>\n The lower qualifying earnings limit, the point at which an individual's employer must start to calculate pension contributions, is currently \u00a36,240.<\/p>\n A minimum of 8% must be paid into the pension, with you contributing 5% and your employer paying at least 3%.<\/p>\n Crucially, the contribution you make as an employee is deducted before tax.<\/p>\n For example, if you pay 20% tax on your earnings, and your pension contribution is \u00a3100, this only really costs you \u00a380 as this is how much that amount would have been worth after tax.<\/p>\n While opting out of a workplace pension would increase your monthly salary,\u00a0it's best to only do this as a last resort, as you'll have less in later life.<\/p>\n![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/09\/newspress-collage-23981542-1694813354860.jpg\")
<\/picture>LOTTO LUCK <\/span><\/p>\nMystery Brit scoops \u00a323.5MILLION EuroMillions jackpot – check your tickets now<\/h3>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/09\/drg238-unemployment-rate-uk-drop-563989568-1.jpg\")
<\/picture>BYE BYE <\/span><\/p>\nWarning for thousands on Universal Credit as 26 Jobcentres to close<\/h3>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/09\/wilko-.webp?strip=all&w=300&h=192&crop=1\"\/)
<\/picture>SHUTTERS DOWN <\/span><\/p>\nExact dates for next wave of Wilko shop closures – is your local shutting?<\/h3>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/08\/2020-london-england-united-kingdom-813379799-1.jpg\")
<\/picture>CHEERS! <\/span><\/p>\nWetherspoons is slashing price of 60 food & drink items at 800 pubs – see full list<\/h3>\n
How do workplace pensions and auto-enrolment work?<\/h2>\n
READ MORE SUN STORIES<\/span><\/h2>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/09\/newspress-collage-23980708-1694810295160.jpg\")
<\/p>\nMolly-Mae Hague shares glimpse of rarely-seen mum on day out with daughter Bambi<\/h3>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/09\/newspress-collage-23981805-1694818531400.jpg\")
<\/p>\nM&S is making a huge change at checkouts – and shoppers will be divided<\/h3>\n