Home > Transcript – Joining a workplace pension when you’re older
Some people feel it’s not worth starting a pension later in life. But the truth is you are never too old to grow your money.
Because if you’re automatically enrolled into NEST, on top of your own contributions, you’ll get extra money from your employer.
Most people will also get money from the government in the form of tax relief.
And in most cases, money to buy a retirement income.
With a savings account, you’d miss out on these extra contributions and it’s unlikely your money would keep up with inflation when interest rates are low.
You also don’t have to take your money out of NEST when you reach state pension age. Waiting an extra two or three years gives us more time to grow your money as much as we can.
So you could increase the size of your retirement pot by leaving your money in a little bit longer.
So let’s say you start monthly contributions when you’re 55. When you reach 66, you might end up with a retirement pot of 14,449 pounds. But if you leave your money in until you’re 68, you’d have 17,555 pounds. Over 3,000 pounds extra.
So you can directly affect what your retirement pot is worth. What impacts this most is what you do now.