Brits 'should take advantage of employer pensions'
Tuesday, 22 February 2011 11:52
Employees in the UK are missing out on 'free money' by not taking advantage of employer pension schemes, according to new research.
Figures published by Standard Life show that some 4.5 million UK workers have the chance to receive free pension contributions from their employers - and yet do not do so.
Revealing that Brits could be missing out on £1,271.40 per year - based on employer contributions of five per cent and an average wage of £25,428 - the survey also finds that 22 per cent of people do not use the maximum available employer match.
This results in the loss of a further £790 per year.
"Our research shows that a huge number of people miss out on this 'free money' and as a result lose a significant contribution to their retirement fund," comments head of pensions policy at Standard Life John Lawson.
He adds that when auto pension enrolment comes into play in 2012, the situation should be alleviated.
According to recent research by HSBC, Brits regularly underestimate the cost of life's big events, such as weddings and raising a child.
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