Get Ready To See A Drop In Your Wages From Next Month

Millions of workers could see their wages drop next month as the government triples the amount it automatically pulls to save for your retirement.

From April 6 onwards, the money taken from your pay cheque and paid into your workplace pension will increase from 1% to 3%.

For the average earner, that amounts to £540 every year.

But if you choose to opt out, you could be throwing away a potential £450,000 by the time you retire, an insurer has calculated.

The automatic enrolment scheme has seen nine in 10 people staying with their workplace pension, but Aegon is warning workers not drop out amid next month’s increase.

While more of your money will be taken, your boss’ contribution will double from 1% to 2%.

According to Aegon, this could work out as a £5 billion pay rise for British workers.

And in April 2019, this rate will increase to 8%, with a minimum of 3% from the employer, leaving a 5% minimum staff contribution.

Minimum contributions are gradually being increased to help encourage people save enough for a comfortable retirement.