Savers could be in line for a pension pot boost of as much as 30% this year with further rises on the way, new analysis by Aviva has shown.
The gains are the result of planned increases in workplace pension contributions in April, which will see them climb from 2% to 5% of salary.
The surge could see average earners adding £36,000 more to their retirement nest eggs over their lifetime, the pensions giant said.
Since 2012, auto-enrolment has introduced 9.3m more employees to saving for retirement and Aviva’s data highlights that rising contribution rates will see those on average £26,572 salaries adding £840 to their pot across 2018 - up from £600 last year.
The rise to 5% would typically see employees contributing 3% and their employer putting in the other 2%.
Pension pots are set to increase further still, with minimum contributions set to go up in April 2019 to 8%, meaning average savers would have £101,000 at retirement, representing an additional £35,000 in their pension pot and more than triple the amount they would have under current contribution levels, Aviva predicts.
Andy Curran, MD corporate at Aviva, said: “Auto-enrolment has been an incredible force for good since its introduction in 2012 with more people than ever before now contributing on a monthly basis towards their retirement.
“It is vital the latest milestone is used as a basis on which to build further momentum around the need for people to save for retirement. If as a society we are to avoid a retirement savings crunch further down the line, we must go further still in the years to come.”
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