Britons could add as much as £37,000 to their retirement savings simply by cancelling forgotten subscriptions and funnelling that cash into their pensions, according to new research from Standard Life.
The firm’s analysis reveals that the typical UK consumer squanders £39 each month on direct debits they no longer use or need, particularly on forgotten subscription services.
This wasted expenditure, which is roughly equivalent to the combined cost of two major streaming platforms, represents a significant missed opportunity for long-term wealth building.
With the new year prompting many to reassess their finances, redirecting these overlooked outgoings towards retirement funds could deliver substantial returns over a working lifetime.
Could you boost your pension boost by £37,000?
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Standard Life’s calculations demonstrate the power of consistent pension contributions over time with more Britons being encouraged to invest more in private and workplace schemes.
A worker beginning their career at 22 on a £25,000 salary, paying minimum auto-enrolment rates of five per cent employee and three per cent employer contributions, would accumulate approximately £210,000 by age 68.
However, channelling that £39 monthly saving into their pension pot would push the total to £247,000, which is an additional £37,000 in today’s money. Those with even more redundant subscriptions stand to gain considerably more.
Eliminating £78 worth of unnecessary payments, which is the approximate cost of gym membership plus premium streaming services, could boost retirement funds by £73,000.
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Mike Ambery, the retirement savings director at Standard Life, urged Britons to check their bank statements and see where savings could be made to bolster their retirement prospects down the line.
He said: “Unused direct debits have a habit of quietly draining our bank accounts in the background. The new year is often a time people focus on their physical health, but it’s also the perfect moment to think about your financial wellbeing too.
“Redirecting just a few of those forgotten payments into your pension could make a meaningful positive impact to your financial future.
“However, it is important to double check terms and conditions of cancelling any direct debits or subscriptions to avoid potential penalties or impact on your credit scores.”
Mr Ambery emphasises that modest adjustments made early in one’s career can yield disproportionate benefits through tax relief and compound investment growth.
The savings expert offers several practical steps for getting pension finances in order this year.
He recommends reviewing statements or logging in online to understand current savings, noting that pension calculators can translate today’s contributions into projected future income.
With the tax year ending in April, savers should consider whether they can maximise their annual allowance of up to £60,000, or carry forward unused allowances from the previous three years.
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Workers should also be aware that pension access age rises from 55 to 57 in 2028. For those with multiple employers over the years, the government’s Pension Tracing Service can help locate forgotten pots.
Mr Ambery added: “With the end of the tax year approaching, it’s worth checking whether you can make your money work harder. Most people can contribute up to £60,000 a year, or 100 per cent of their earnings if lower, into their pension and benefit from tax relief.
“You may also be able to ‘carry forward’ unused allowances from the last three years. This can be particularly helpful if you’ve had a pay rise, a bonus, or some spare cash you’d like to put towards your future.
“Just like it’s easy to lose track of time between Christmas and new year, it can be easy to lose track of your pension plans. Make sure you know where to find your old plans. You can use the government’s Pension Tracing Service to help you hunt down any you might’ve lost track of.”