{"id":58902,"date":"2025-08-11T10:08:07","date_gmt":"2025-08-11T10:08:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/58902\/"},"modified":"2025-08-11T10:08:07","modified_gmt":"2025-08-11T10:08:07","slug":"state-pensioners-whove-been-in-work-for-40-years-could-have-100000-wiped-from-pot","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/58902\/","title":{"rendered":"State pensioners who’ve been in work ‘for 40 years’ could have \u00a3100,000 wiped from pot"},"content":{"rendered":"

Pensioners could miss out adding a whopping \u00a3100,000 to their pension pot, it has been warned.\"StateState pensioners who’ve been in work ‘for 40 years’ could have \u00a3100,000 wiped from pot<\/p>\n

State pensioners face a \u00a3100,000 cut to their pension if they make one mistake. Pensioners could miss out adding a whopping \u00a3100,000<\/a> to their pension pot, it has been warned.<\/p>\n

For a typical person, not taking advantage of extra contributions of 1% of their salary for 40 years could result in up to \u00a3100k loss. According to research by the Institute and Faculty of Actuaries (IFoA): “For an individual it is very easy to forget, or delay thinking about pensions and sometimes that is the best thing to do.<\/p>\n

“The strength of auto-enrolment and default investment strategies is that they are designed to help a pension pot build up without any action. However, there will be a few key moments in an individual\u2019s life when mistakes<\/a> can leave them with far less pension than they may ultimately need.<\/p>\n

READ MORE Warning for anyone banking with Santander from Monday onwards<\/a><\/p>\n

“It is important to recognise that individuals\u2019 decisions about pensions do not occur in a vacuum. The choice for many relying on auto-enrolment is not between ‘do I pay more into my pension or not’, but between ‘do I pay into my pension or save for a house deposit’ or ‘do I pay more into my pension or meet my current household needs or debt or pay off my student loans’.<\/p>\n

“This becomes a more complicated picture when we consider life circumstances such as age, location and marital status, and other associated costs like the cost of health, childcare and social care.<\/p>\n

“The IFoA wants to encourage individuals to prioritise their pension where they can and illustrate how decision-making over the shorter-term can have a drastic impact on final pension amounts over the longer-term.”<\/p>\n

Ir adds: “It\u2019s a simple fact that the biggest pension mistakes an individual can make is to never start one.<\/p>\n

“As mentioned above, not all workers in the UK are eligible for AE and for workers such as those that are self-employed, they must set up their own pension.<\/p>\n

“If an individual does not prioritise their pension (for example because they are concerned about cashflow, or it never makes its way to the top of the \u201cto-do\u201d list) they will miss out on tax relief and the miracle of compound interest (which Einstein described as the 8th wonder of the world).<\/p>\n

“Never starting a pension could mean that an individual ends up working far longer than they would like. For the average person, starting a pension at 35 instead of 25 could mean their pot is only \u00a3500k at retirement instead of \u00a3800k.<\/p>\n

“Early contributions have a huge impact. It is worth noting that as of March 2024, there are 4.25 million self-employed people in the UK who do not readily have access to automatic enrolment.<\/p>\n

“Further policy interventions are required to support this segment of the working population.”<\/p>\n","protected":false},"excerpt":{"rendered":"Pensioners could miss out adding a whopping \u00a3100,000 to their pension pot, it has been warned.State pensioners who’ve…\n","protected":false},"author":2,"featured_media":58903,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,2215,4176,4174,4175,56,54,55],"class_list":["post-58902","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-dwp","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/58902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=58902"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/58902\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/58903"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=58902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=58902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=58902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}