With more UK adults taking pension saving into their own hands, new analysis from Standard Life reveals that even small increases in contributions or occasional lump sums could add tens of thousands of pounds to retirement pots.
As Pension Engagement Season 2025 gets underway, new research¹ from Standard Life reveals that nearly a third (31%) of UK adults are taking proactive steps to strengthen their retirement savings by increasing their workplace pension contributions beyond the minimum level. Additionally, one in ten (10%) have made one-off lump sum payments into their pension.
Standard Life’s analysis² highlights how even modest increases in pension contributions – whether monthly or occasional – can significantly enhance retirement outcomes, thanks to the power of compound investment growth over time.
For example, someone who starts working at age 22 on a salary of £25,000 and pays the minimum auto-enrolment contributions (5% employee, 3% employer) could build a pension pot of around £210,000 by age 68, adjusted for inflation. However, increasing monthly contributions by just 2% (to 7% employee) from the outset could result in a retirement fund of £262,000 – an uplift of £52,000.
Even a 1% increase in monthly contributions could add £26,000 to the final pot, showing how small changes can make a meaningful difference over time:
| Total retirement fund at age of 68* | |||||
| Standard contributions of 5% employee and 3% employer | Contributions of 6% employee and 3% employer | Contributions of 7% employee and 3% employer | Contributions of 8% employee and 3% employer | Contributions of 9% employee and 3% employer | Contributions of 10% employee and 3% employer |
| £210,000 | £236,000 | £262,000 | £289,000 | £315,000 | £341,000 |
| +£26,000 | +£52,000 | +£79000 | +£105,000 | +£131,000 | |
*assuming 3.50% salary growth per year, and 5% a year investment growth. Figures account for 2% inflation. Annual Management Charge of 0.75% assumed. The figures are an illustration and are not guaranteed. Earning limits not applied.
One-off contributions also offer a valuable boost. For instance, someone who makes nine payments of £500 every five years between ages 25 and 65 could be £5,000 better off in retirement. Those able to contribute more – for example £5,000 every five years – could see their pension pot grow to £264,000, an increase of £54,000 compared to standard contributions alone:
| Total retirement fund at age of 68* Based on pension saving with one-off contributions every 5 years between 25 and 65 (9 contributions) | Total retirement fund at age of 68* Based on pension saving with one-off contributions every 10 years between 25 and 65 (5 contributions) | |||||
| No additional contributions | Contributions of £500 | Contributions of £1,000 | Contributions of £5,000 | Contributions of £500 | Contributions of £1,000 | Contributions of £5,000 |
| £210,000 | £215,000 | £221,000 | £264,000 | £213,000 | £216,000 | £241,000 |
| +£5,000 | +£11,000 | +£54,000 | +£3,000 | +£6,000 | +£31,000 | |
*assuming monthly 5% employee, 3% employer contributions between 22 and 68. 3.50% salary growth per year, and 5% a year investment growth. Figures account for 2% inflation. Annual Management Charge of 0.75% assumed. The figures are an illustration and are not guaranteed. Earning limits not applied.
Dean Butler, Managing Director for Retail Direct at Standard Life, part of Phoenix Group, commented:
“It’s great to see so many people taking charge of their financial future – and the best part is, you don’t need to make huge changes to see a big impact. Even small top-ups, whether monthly or occasional, can add up to tens of thousands of pounds over a working lifetime.
“Pensions Engagement Season is a great time to check your pension and consider whether you could afford to contribute a bit more. Our analysis shows that even a 2% increase in monthly contributions could potentially result in an extra £52,000 in retirement, while making one-off payments of £1,000 every five years could boost your pot by £11,000. Starting early and contributing consistently is key, and some employers will match additional contributions, giving your savings an even greater lift. If you’re able to save more, your future self is likely to thank you.”
