DWP explains how to turn £1 into £4 in major pension boost

Detailed summary

The Department for Work and Pensions (DWP) has urged people to start saving for retirement, explaining how every £1 put into a pension today could be worth £4 by the time they…

The Department for Work and Pensions (DWP) has urged people to start saving for retirement, explaining how every £1 put into a pension today could be worth £4 by the time they stop working. The DWP has reminded workers that saving into a pension as early as possible can make a big difference to how much money they have later in life. In a post on X, the DWP said: "Some of the best things in life take time. That includes your pension where every £1 you put in today could get you £4 in return when you retire. Have you started saving into yours?"

The department also shared a video comparing saving for retirement to pouring a pint of Guinness, explaining that both need time to get the best results. The video said: "There's something that pensions and pouring a pint of Guinness have got in common: you've got to give them time.

“Save into your pension when you're working - your employer adds in too - and then you give it time to settle and to grow. And then it builds up over your working life for you to enjoy in retirement. So don't wait for your retirement to start thinking about your pension. Save now if you can, save a bit more if that's possible, and you'll be glad you did when it comes to retirement."

The message comes as workers are encouraged to consider how much they are setting aside for later life, rather than relying entirely on the State Pension. Experts at MoneyHelper explained: "If you want to stop working when you’re older, you’ll need enough money to live on. The State Pension might cover some costs, but you’ll usually need your own pension and other savings for a comfortable retirement."

The State Pension is a regular payment from the Government that people can claim once they reach State Pension age. How much someone receives depends on their National Insurance record, with the full new State Pension currently worth £241.30 a week.

However, experts at MoneyHelper warn that even people receiving the full amount may struggle to cover all their retirement costs.

Opening of the article, excerpted from Daily Express. To read the rest, open the article on the publisher's site.