Recent research has apparently shown that if people paying into pensions linked their contributions to the rise in inflation each year, they could get a 40% better pension. Many people receive pay rises linked to the rate of inflation so this should mean increasing pension contributions is painless!
Our View
Whilst the claim about getting a 40% bigger pension should not be taken too literally, increasing your pension contributions whenever you can will benefit you in retirement. You should also ensure your pension is reviewed regularly to ensure that the fund you are investing in is doing well. If you don't review your pension funds at least annually, you could be paying in but seeing no benefit. This is especially true if your fund is losing value and charges are taken out each year.