REVEALED: How one in four over 55s could DOUBLE pension savings

Around one in four over 55s are opting out of auto-enrolment workplace pension schemes, found a study by provider NOW:Pensions.

Older workers are three times more likely to spurn employment pensions – even though they are in effect turning down free money.

Opting out of workplace pensions means missing out on an average £433 a year after tax relief and employer contributions are taken into account, according to NOW:Pensions.

In reality, workers could are likely to be reaching the peak of their career could be missing out on much more.

For example, a 60-year-old who earns £57,000 a year stands to miss out on £1,106 of money and tax relief by failing to save into a pension.

NOW: Pensions policy director Adrian Boulding said: “Older people may think that it makes sense not to have another pension scheme – perhaps they think they’ve saved enough, or perhaps they feel they can’t afford it – people who do this are effectively throwing money away by missing out on their employer’s contribution to their pension, and the government’s contribution in the form of tax relief.

“While some people who are near the lifetime limit do need to opt out, if you are not in that situation then it just doesn’t make sense to opt out – especially at older ages.”