Martin Lewis warns workers on low incomes not to miss out on ‘hidden’ pay rise
MONEY guru Martin Lewis has explained how those employed and under 22 or anyone on a low income could be in line for a hidden pay rise.
That's because those who earn under £10,000 a year or are aged under 22 are not automatically enrolled into employer pensions.
It means that they could be missing out on thousands of pounds over the course of their career.
For those aged under 22, or over state pension age, or earning under £10,000 a year, the default setting is to be opted out of pension auto-enrolment.
But you can chose to be part of it, and in most cases, your employer has to allow you to do it.
In some cases they will also have to pay towards your pension - and if they don't automatically you could ask them to.
He said: "My big message here is, opt out and you're effectively giving up a pay rise and you're giving up the tax benefit too.
"Of course you're going to take home less, but what you get in the pension return - the doubling or nearly trebling - is so important."
Consider your retirement options
If you are on a low income then it may not feel do-able to opt into an auto-enrolment scheme but you should do your research and think about how you are going to save for retirement.
In order to pay for retirement you may want to get a private pension. You could do this through an employer scheme or set up your own one.
You may also want to think about whether you will stay with this employer for a long time.
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