Money Saving Expert founder Martin Lewis warns against opting out or reducing workplace pension contributions, emphasizing the significant 'free cash' forfeited by doing so. He highlights the importance of employer contributions and the benefits of tax relief, urging individuals to understand the financial implications of their pension choices.
Brits have been handed some urgent pension advice, as Martin Lewis warned that individuals might be "throwing away free cash" by not maintaining their workplace pensions. Writing for his site Money Saving Expert , Martin underscored the significance of keeping up with your workplace pension contributions.
"In other words, you are 'opted in' to contributing without being asked," he explained. "I'm a supporter of this as it pushes people into good financial behaviour and, crucially, because if you're opted in, your employer must contribute too." He highlighted the added advantage of tax relief, saying: "Yet due to the tax relief, this only costs you £80. So that's double invested compared to what it costs you, and this is accelerated for those on higher tax rates ."
"Opting out is usually a bad idea, as you're throwing away free cash. See my old don't give up a pay rise blog for the very few times it may be worth considering. Even more so, you may think 'I just want to lower my contributions'."
PENSIONS WORKPLACE PENSIONS MARTIN LEWIS SAVINGS TAX RELIEF
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