Brits might be able to ‘double or triple’ their pensions simply by making simple policy adjustments, says a well-rounded financial expert.
Martin Lewis, the host of a special ITV show on Thursday (17 February), urged employees to review their workplace pensions immediately, sharing expert advice that could benefit millions of people.
The Manchester Evening News reports that Martin Lewis explained the logistics surrounding private workplace pension schemes and urged everyone to check and change their policy as soon as possible for easy and hassle-free monetary gains.
Whenever you put money into the pot, you pay less tax and your employer matches the amount, he said.
You get another £60 from your employer if you’re a basic rate taxpayer losing 20% of your income to taxes, Lancs Live reports.
Normally, you can keep only £80 out of every £100 you earn since £20 is taxed. You only keep £60 from every £100 over the higher rate threshold if you’re a higher rate taxpayer.
If you make sure you’re enrolled in the workplace program, you can almost double or triple your money since the employer matches the money and it isn’t taxed.
Martin Lewis Explained: How much could I get?
Martin Lewis Says In effect, you lose £80 in your pay packet, but you gain £160 in your pension.
As a higher rate taxpayer, you pay £60 and receive £160, nearly triple the amount going into your pension.
It’s unbeatable – there’s nothing else like it. My main point is opt-out and you’re giving up a pay rise, as well as tax benefits.
You will take homeless, but the return on your pension is so good that you should not opt-out.
People who have not been automatically opted in can and some of you should opt-in because your employer must let you join and it must contribute if you’re between 16 and 74 and earn over £6,742.
“Imagine that a 21-year-old is living at home with no expenses. It’s the perfect time to start a pension.