Cash point

Even though 10 million people are now auto-enrolled into workplace pensions, 12 million workers in Britain still aren’t saving enough for a comfortable retirement, according to the Pensions Commission.

Auto-enrolment contributions aren’t enough to ensure an adequate savings pot and they’re not calculated on full earnings – kicking in at £6,032. In spring, those contributions will rise to 8% (5% worker, 3% boss) – but qualifying earnings levels also rise to £6,136.

So if you earn £24.5k you’ll have total annual pension contributions of £1,469.76 from April, compared to £1,960.64 if based on full earnings.

It makes the difference between a potential £76,299.86 pot and £101,783.

So don’t just stick to minimum contributions. Some firms will match what you put in up to a maximum percentage. Save the most you can afford to build a decent pension.