Did you know that you’re potentially missing out on hundreds, if not thousands of pounds?
Maji’s here to help you get your hands on this free money, so you’ll have more in your pocket and in your pension.
Saving for tomorrow
If you're not yet saving into your workplace pension, you could be missing out on a huge amount of money. Not only can saving up a small amount each month build up a sizeable pot for your retirement, you'll also be growing your money.
Importantly, when you save into a pension, you’ll get tax relief from the government - a full 20% of your contribution if you’re a lower-rate taxpayer (and more if you’re a higher-rate taxpayer, although if you’re not in salary exchange, you may need to claim some of this yourself). Additionally, money you put into your pension is usually invested for longer than other types of savings and investments. So, your money has longer to grow.
If your workplace is offering you the chance to opt into salary exchange, it’s a no-brainer. You’ll get more take-home pay just by changing the way your pension contributions are paid. Because your pension contributions are taken before tax, you’ll pay less in National Insurance contributions.
You can learn more about Salary Exchange here, and you can opt in with just a few clicks via your Maji account.
As an example, someone earning £30,000 can pick up an extra £143 a year just through this simple switch.
Raising your contributions
Sounds weird, but putting in a bit more money now can get you a lot more money at the end of the day!
Because of the power of compound interest, a small amount added to your contributions now can turn into a much higher amount over time. This is especially true of a pension, where your money can be invested for many years.
Don't forget, you'll also get tax relief on your contributions too.
So, by raising your pension contributions by just 1% today, you could get more free money in your pension pot in the form of tax relief, plus all the interest it generates over time! For example, a 1% increase each year over three years, based on a £30,000 salary, could add up to an additional £55,000 after 30 years.
If your workplace offers a matching scheme, make sure you’ve taken advantage.
In many workplaces, pension contributions are made on a flat-rate basis. But, some employers offer a matching scheme, whereby if you raise your contributions, your employer will also raise theirs (usually to a capped level). You can find out if your employer is offering a matching scheme by checking your savings rate information on Maji. If they are, raising your own contributions can then give you even more free money in the form of higher contributions from your employer.
Make the most of your pension
Maji can help you make the most of your pension so you’re not missing out on all this money. You can opt into salary exchange with just a few clicks, and raise your contributions so you’ll benefit from more free money and the power of compound interest.