Workers who pay an extra £45 a month into their workplace pension could build an additional £42,000 in retirement savings over their working life, according to new research from retirement specialist Standard Life.
Calculation Assumptions
Standard Life's calculations are based on someone starting work at age 22 on a salary of £25,000 and paying the minimum auto-enrolment pension contributions. The figure assumes the worker increases the additional monthly contribution in line with inflation each year and benefits from long-term investment growth.
Under these assumptions, the person's retirement pot could grow from around £210,000 to approximately £252,000 in today's money by age 68.
Impact of Small Changes
The additional £45 a month is roughly equivalent to what many people spend on eating and drinking out each month, according to Standard Life. The company says even relatively small amounts can make a substantial difference when invested over several decades.
Standard Life is encouraging households to carry out a ‘mid-year money MOT’ to assess their finances and identify opportunities to improve both short-term financial resilience and long-term savings.
Expert Advice
Mike Ambery, Retirement Savings Director at Standard Life, said: "The halfway point in the year is a natural moment to pause and reflect on how things are going financially. For many people, the past few months will have been shaped by higher costs and competing priorities, so it's no surprise if plans haven't quite gone the way they expected. Real life isn't linear – and saving for the future has to work around the ups and downs of everyday life. The important thing is recognising that it's not too late to take action. A mid-year check-in gives people the chance to reset, build momentum, and take small steps that can make a meaningful difference over time."
Financial MOT
Ambery said reviewing finances does not mean making dramatic lifestyle changes or giving up everything people enjoy. "One way to think about it is like an MOT for your finances. It's not about changing everything overnight – it's about stepping back, checking what's working, and making a few adjustments so you feel more confident about where you're heading."
He added: "Whether it's building a cash buffer, investing through an ISA, or boosting your pension, there are different ways small amounts can be put to work. While each has its role, pensions can be particularly powerful over the long term, especially when you factor in tax relief, employer contributions and potential investment growth."
Practical Steps
As part of its mid-year review, Standard Life encourages people to check how much money is coming into and leaving their bank account each month, review whether regular spending still reflects their priorities, and consider whether they can afford to increase the amount they save. The company also suggests checking whether savings and investments are working as hard as possible, reviewing pension contributions, and setting one or two realistic financial goals for the remainder of the year.
Long-Term Benefits
While boosting pension contributions may not be possible for everyone during ongoing cost of living pressures, Standard Life says even modest increases can have a significant impact over time thanks to compound investment growth, tax relief, and employer pension contributions. For workers able to make the extra contribution, the long-term rewards could amount to tens of thousands of pounds by retirement.
