Increase pension contributions and delay retirement, says PPI

Choosing to increase your pension contributions while also opting to delay retirement could provide a significant boost to your savings, according to the Pensions Policy Institute (PPI).

The advice comes following the release of a report by the PPI, which highlights the impact that different individual and employer choices can have on private pension income.

According to the findings of the study, a median earning man who begins saving from the age of 30 who increased his pension contributions from eight per cent of band earnings to 12 per cent cent could see pension income rise by 50 per cent.

Deciding when you retire could also affect pension income, with a median earning woman who delays retirement by two years after the state pension age boosting income by around 20 per cent.

Commenting on the research, Niki Cleal, PPI director, noted that while these options provided an opportunity to boost retirement earnings they ultimately "involve sacrifices on the part of the individual".