Millions Missing Out On ‘Free Money’
June 28th, 2017
Over 3 million people are missing out on as much as an annual 2 billion of ‘free money’ on offer from their employers through their pension schemes, says the Telegraph. Many employers offer 1-for-1 matching for employees’ contributions (above a low threshold level) to the pension scheme, so if the employee puts in an extra 100 per month, the employer matches that with an equal contribution.
This is effectively free money, and can add thousands to your retirement income, yet take-up of these offers is very low except when companies make them the default option – Nationwide found that when it did so 80 per cent of its employees raised their contributions to get the pension boost.