“The total pension contribution is now nine percent, and the pension pot value is estimated to increase to £139,699 – an increase of £15,522, an increase of 12.5 percent of the original pot.
“However, if his employer were to match his one percent increase, the total pension contribution would be 10 percent, and the pension pot value is estimated to increase to £155,221 – an overall increase of £31,044. This is more than 25 percent increase of the original pot.”
Example 2: Caroline, 25, earning £55,000 per year
“Caroline is 25 and earns £55,000 per year.
“She also plans to retire at 68, and pays five percent of her salary into a pension, and her employer pays three percent.
“It is estimated that her pension pot value at age 68 will be £273,189.