Cutting out some small luxuries in life could make all the difference in pension savings, according to an expert.
By saving around £2.40 a day could make all the difference when it comes to reaching retirement, claims AEGON UK.
The company states that an extra £2.40 per day contribution to a personal pension plan could allow a 35-year-old earning £23,000 to reach a target pension, without a state pension, of half their final salary at age 65 rather than age 67.
Furthermore, figures are less for a 20-year-old who could retire three years before their state pension age of 68, with an extra contribution of £1.68 per day.
Steven Cameron, head of business regulation, said: "With all the talk of having to wait longer for state pension benefits it’s easy to forget there are other options which would allow people to bridge the gap.
"People have a choice in how they manage their personal savings gap and for many, saving more will be an attractive alternative to working longer."
The recent government reforms on pensions include a raising of the retirement age to 68 in the future, to offset a restoration of the link to earnings in 2012.
Small changes could mean big pension savings
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1998 - 2008 UK Pensions - Planning before, at the onset and during retirement.
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