The new monetary year, which started on 6 April, saw an increase to contributions into auto-enrolment superannuation schemes. For those signed up to an auto-enrolment pension scheme, workers and employers on both be required to put away more into a pension pot. The minimum contributions cause risen to 8 percent, with employees now paying in 5 percent and employers have a hand ining 3 percent. This is up from the 5 percent of contributions workers and companies were coerced to pay in last year, where employees contributed 3 percent and employers 2 percent.
But consideration the changes already being put into place, a staggering 35 percent of employees are unaware of how much they are paying into their pension each month, agreeing to pensions advice specialist Portafina.
Auto-enrolment pension contributions are charmed directly from pay packets, meaning this amount is found on an hand payslip.
In addition to this, 47 percent of working Brits implied they do not understand how auto-enrolment works, with 14 percent accepting they do not what auto-enrolment means.
Only 33 percent take it their pension pot, including the State Pension, is on track to maintain the contemporary wage from the age of 65, despite the increase in auto-enrolment contributes.
Jamie Smith-Thompson, managing captain at Portafina, said: “Those that qualify for a workplace pension discretion notice more coming out of their pay packet from 6 April.
“This is because hand’s contributions into a workplace pension scheme via auto-enrolment have risen to 5 percent, including tax release.
“Coupled with increased employer contributions, this could take a massive positive impact on the standard of living Brits can look bold to in retirement.
“Auto-enrolment is currently available to everyone over the age of 22.
“This mercenaries those fresh out of higher education could have the opportunity to start nest egg for their future immediately, providing they earn over £10,000 a year and by work in the UK.
“However, over half (54 percent) of 18-24-year olds brook that a lack of education at school has stopped them from attractive their pension seriously.
“It’s also shocking to see that they were the most promising age group to wrongly think that they couldn’t access their benefit until they were 65.”
The Pensions Advisory Service can offer handling and cover the pension basics.
Or to talk about how your money is instated, speak with an independent financial adviser who is regulated by the Financial Attitude Authority.