![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/08\/23d2d858-9c2f-4839-930b-d237994cac3e.jpg\")
<\/p>\nYOU could be missing out on \u00a3200,000 in your retirement by making these four, small pensions mistakes when starting a new job.<\/p>\n
Saving for the future probably isn't at the forefront of anyone's when they start a new job.<\/p>\n
<\/p>\n
But not thinking about your retirement now could mean you're losing out on extra money you could use to boost your pension.<\/p>\n
This is important as savers have been warned that the state pension\u00a0won't be enough to get by financially\u00a0in retirement.<\/p>\n
It means that you'll want to put as much cash aside as you can to make sure you're not struggling in later life.<\/p>\n
Becky O'Connor, director of public affairs at PensionBee, said: "Pensions are an often overlooked part of the overall employment package. <\/p>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/06\/TM-comp-Pension-2.jpg\")
<\/p>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/08\/laura-suter-main.jpg\")
<\/p>\n
"This is often down to a lack of information from employers about the pension scheme being provided as part of the application process. <\/p>\n
"But with pensions making such a huge difference to retirement outcomes, they should arguably take greater prominence in the information given by employers and considered by applicants."<\/p>\n
Becky has shared the four burning questions you should ask an employer when you start a new job to maximise your pension pot.<\/p>\n
Many employers stick with their\u00a0auto-enrolment minimums\u00a0when it comes to workplace\u00a0pensions.<\/p>\n
<\/span><\/p>\n <\/span><\/p>\n <\/span><\/p>\n <\/span><\/p>\n But if you have an employer who is willing to do more then this could have a massive impact on how much you end up with in\u00a0retirement.<\/p>\n Becky said: "Double matching\u2019, when you increase what you put in and the employer doubles up on your contributions, up to a maximum, is a very effective way of ramping up the amount going into your pension."<\/p>\n Since October 2012, employers have had to automatically enrol workers into one of the schemes.<\/p>\n There are minimum contributions that you and your employer must pay.<\/p>\n A minimum of 8% must be paid into the pension, with you contributing 5% and your employer paying at least 3%.<\/p>\n PensionBee says that by not asking an employer for matched contributions, a graduate on a starting salary of \u00a330,000 could be missing out on up to \u00a3200,000 in pension contributions over their working life (from ages 22-65). <\/p>\n This is based on their auto-enrolment contributions doubling from the 8% minimum to 16%.<\/p>\n Defined benefit schemes are where your employer agrees to pay you a certain income in retirement. <\/p>\n This can be based on either your earnings level throughout your time at that company, or what you earn when you leave. <\/p>\n While they usually require some type of contribution from your salary, you do not take responsibility for your pot, your employer does – and the contributions added by the employer are usually pretty high.\u00a0<\/p>\n Becky said: "These schemes tend to be more generous in terms of what you get out at the end as income than defined contribution pensions. <\/p>\n "Defined benefit schemes are more common in the public sector and large private sector organisations, although they are becoming more rare, as they can be difficult for employers to fund.\u00a0"<\/p>\n Defined contribution pensions are now far more common in the private sector and the chances are this is what your new employer will offer. <\/p>\n This is where your contributions and your employer\u2019s are invested in a pension fund and by the time you finish work, the hope is this will have grown into a decent-sized pot for you to be able to retire.\u00a0<\/p>\n That's why it's a good idea to clarify exactly what your employer will be contributing, so you can really maximise your pot.<\/p>\n Pensions can be confusing, so it's important that you get to grips with all the lingo – and what it means for you.<\/p>\n Net pay pension contributions are where the full amount of your contribution is taken before tax is deducted, so that you end up with a lower tax bill on your earnings.<\/p>\n Relief at source contributions are where your contributions are taken from your pay after your salary is taxed – you then get 20% basic rate tax relief added by your provider to your pension contribution. <\/p>\n If you are a higher-rate taxpayer, you claim the extra relief you are owed via your tax return.\u00a0\u00a0<\/p>\n Becky said: "Low earners can sometimes be at a disadvantage in net pay schemes – relief at source contributors get the tax relief added to their pension, even if they don\u2019t pay tax. <\/p>\n "The Government has announced plans to correct this anomaly for low earners in net pay schemes by 2025."<\/p>\n Salary sacrifice is a bit like net pay, but is an agreement to give up some of your salary, which is then paid into your pension instead by your employer. <\/p>\n This is so the employer makes the contribution rather than the employee. <\/p>\n The arrangement also results in National Insurance savings.<\/p>\n "It\u2019s not all about the pension," Becky said. <\/p>\n "Some employers offer other long-term saving schemes, such as share incentive plans, save as you earn schemes and share option plans. <\/p>\n "These usually mean that if your company does well, your rewards increase."<\/p>\n While these are not substitutes for pensions, they often come with tax advantages and are worth considering when deciding on the overall attractiveness of your package.<\/p>\n Meanwhile, a retirement expert has revealed a little-known FREE trick to boost your state pension by \u00a33,000 a year and it takes just minutes.<\/p>\n Plus, almost 100,000 pensioners with less than \u00a310,000 saved could be blocked from cashing in their plans\u00a0– check if your pot is affected.<\/p>\n![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/08\/2023-wilko-shop-staines-upon-840343661-3.jpg\")
<\/picture>\nNew Wilko rescue bid emerges as MoneySavingExpert warns of online scam<\/h3>\n<\/section>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/07\/fried-chicken-crispiest-flavorful-crunchy-829678226.jpg\")
<\/picture>\nFast food chain you've never heard of that's 'better than KFC' – prices start at 30p<\/h3>\n<\/section>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/08\/JW-OMAZE-HOUSES-COMP.jpg\")
<\/picture>\nMan who won \u00a33m Omaze mansion 'demands payout'\u2026 as most winners sell prizes<\/h3>\n<\/section>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/08\/newspress-collage-23678034-1693217880322.jpg\")
<\/picture>\nMajor bank with 340 branches to close more locations forever within hours<\/h3>\n<\/section>\n
2. Is the pension defined contribution or defined benefit?<\/h2>\n
3. Is the pension salary sacrifice, net pay or relief at source?<\/h2>\n
4. Are there any other long-term savings benefits?<\/h2>\n
Read More on The Sun<\/span><\/h2>\n
<\/p>\nFast food chain you’ve never heard of that’s ‘better than KFC’ – prices start at 30p<\/h3>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/08\/crispy-fried-fatty-potato-chips-831705412.jpg\")
<\/p>\nPopular crisps recalled over fears they could trigger deadly allergic reactions<\/h3>\n