Melinda Riley, pensions expert and Head of Technical and Advocacy team, at the Single Financial Guidance Body, commented:
“The Single Financial Guidance Body welcomes the increase in minimum pension contributions. Most people would like to be able to choose to stop work one day and choose how they live. We would encourage everyone to keep paying into their pensions pot if at all possible, because this give you more choice over how to live your later life. The rise means that from April everyone will now be saving at least 8% of their qualifying earnings towards their retirement. Your employer will pay in a minimum of 3% in addition to your contribution that is topped up by tax relief.
“You can find out your likely retirement income in a few simple steps by using the pension calculator on the Money Advice Service website: https://www.moneyadviceservice.org.uk/en/tools/pension-calculator. If you have any questions about your pension you can call The Pensions Advisory Service for free on 0800 011 3797 or go to www.pensionsadvisoryservice.org.uk to start a live webchat with a pension specialist.”