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Pensions: Little-known mistakes costing you thousands in retirement | Personal Finance | Finance

Not speaking to one’s employer

Additionally, he suggested people speak to their employer and ask if they offer salary exchange, which can help boost pension savings by making the contributions pre-tax and National Insurance.

Where possible, people should make full use of employer contributions. It is worth exploring whether their employer offers matching contributions over and above the auto-enrolment minimums, as this could make a considerable difference to their pension pot.

Not being aware of how a pension is invested

Mr Gibb said: “Many people save only the minimum amount into a default fund, but you are unlikely to achieve the best possible returns on your investment if you take this approach.

“It is a good idea to pay more than the minimum amount required into your pension to ensure you are able to build up a substantial pot to support the retirement you would like to have. Additionally, you can benefit from tax relief on pension contributions up to the annual allowance of £40,000 (this tax year).

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