Martin Lewis issues 'important warning' to workers born in these years

Martin Lewis is urging workers aged betwixt 22 and 66 not to miss retired connected a wage emergence (Image: ITV)

Martin Lewis has issued an “important warning” to UK workers calved betwixt 1959 and 2003 not to miss retired connected what is efficaciously a wage rise.

The MoneySavingExpert laminitis is urging workers not to opt retired of pension scheme auto-enrolment arsenic it volition supply you with indispensable savings aboriginal successful life.

Employers are required to automatically enrol unit into a pension strategy and marque contributions to each idiosyncratic aged betwixt 22 and State Pension property - which is presently 66 - who earns astatine slightest £10,000 per year.

Your leader indispensable constitute to you erstwhile you’ve been automatically enrolled and archer you the day you were added, however overmuch they’ll contribute, the benignant of pension strategy you're successful and however to permission if you privation to.

This benignant of pension is simply a savings strategy to supply you with wealth erstwhile you discontinue connected apical of the State Pension, truthful if you take to opt retired you’re missing retired connected a immense magnitude of cash.

But the important happening is that your leader is required to lend to your pension savings connected apical of your salary. As such, you are efficaciously giving up a wage emergence arsenic your leader is giving you other wealth that you wouldn’t person different received, adjacent if you won’t get it close away.

In astir automatic enrolment schemes, you’ll marque contributions based connected your full net betwixt £6,240 and £50,270 a twelvemonth earlier tax. The minimum magnitude your leader indispensable wage is 3% and the minimum full auto-enrolment publication is 8%, truthful you indispensable wage 5% to conscionable this threshold.

Martin Lewis says millions of UK employees person opted retired of pension auto-enrolment schemes - a determination helium says is “a immense mistake”.

Speaking connected his ITV Martin Lewis Money Show, helium explains: “Whether you are a basal 20% oregon higher 40% taxpayer, for each £100 you enactment in, connected the minimums your leader would person to adhd £60 towards your pension pot. But then, we person to look astatine the taxation here.

“Because of course, what you person to retrieve is for you to enactment successful £100 you don’t really suffer £100, due to the fact that astir radical - basal complaint taxpayers - you lone instrumentality location £80 of it, £20 would beryllium tax. So successful effect, you suffer £80 successful your wage packet but you get treble that - £160 going into your pension.

“For a higher complaint payer it costs you £60 and you get £160 - astir triple going into your pension, and that is unbeatable. There’s thing retired determination similar it. Which is wherefore my large connection present is, opt retired and you’re efficaciously giving up a wage emergence and you’re giving up the taxation payment too.

“Of people you’re going to instrumentality location little but what you get successful the pension instrumentality - the doubling oregon astir trebling - is truthful important, truthful don’t opt retired unless you perfectly person to.”