15 million saving nothing for their old age pensions

ONE THIRD of UK workers do not have a private or company pension, according to data from Prudential out today.

The lack of pension plans means they are missing out on £15,000 of tax relief over their working lives, or an average of £334 per year.

Forty-one per cent of women do not contribute, while 29 per cent of men do not have a private pension.

“Failing to save into a pension means not only having to rely solely on the state pension in retirement but also missing out on the ‘free money boosts’ which come with pensions, like tax relief and employer contributions,” said Vince Smith-Hughes from Prudential.

The report suggests that workers who do pay into a private pension pay an average of 6.2 per cent of their annual income. Since the average worker earns £1m over their lifetime, according to the Office for National Statistics, that 6.2 per cent contribution would save £15,000 in tax relief.