SAVING a small amount of money now could get you tens of thousands of pounds in free money for retirement.
When stashing your cash into your pension, the government tops it up too, adding to the amount you have by the time you finish working.
Someone who contributes as little as £25 from the age of 22 would have their pension topped up by £17,700 by retirement.
The total retirement pot would be worth £88,600, according to calculations from pensions firm Aegon for The Sun.
The free cash comes from what's known as pensions tax relief, and would account for 20% of its total value.
The numbers are based on estimates for someone saving from age 22 until a future state pension age of 68.
Starting with £25, the calculations also factor in increasing contributions each year with a pay rise of 3%, as well as investment growth of around 4% a year.
When you save into a pension you are not just putting money in yourself.
As well as your own contribution, you also get pensions tax relief on top of the money you put into a personal or workplace pension.
The government takes what you would have paid in income tax and puts it in your pension instead as an incentive for you to save.
Basic rate taxpayers get a 20% boost to their pension and higher earners making more than £50,000 get 40%.
Getting more from your pension
When saving £25 a month into a pension, the amount is actually £30 with the tax relief of 20% on top.
If you were to save more, the tax relief on top would be larger too, and give you even more in retirement.
Saving £50 a month from age 22 would see £62.50 going into your pension thanks to tax relief.
By retirement that would add up to £35,400 worth of tax relief on a pension pot of £177,300.
And saving £75 a month would mean £93.75 going into your pension, and total tax relief worth £53,100 by the time you retire, with a pot worth £265,900.
Steven Cameron, pensions director at Aegon said: "Pensions are a very attractive way to save over the long-term in part due to the top up the government provides through tax relief.
"Over the years, the value of the tax relief element of pensions contributions is worth tens of thousands of pounds, even to those on modest incomes."
The company you work for may also put money into your pension too.
The figures don't include this and you don't get tax relief on contributions from an employer.
But if you do get money added to your pension from work this could add even more to your pension and give you more in retirement.
Millions of savers are now investors through their pension since auto-enrolment was introduced.
All employees aged over 22 who earn more than £10,000 year are now signed up to a pension automatically by their employer – unless they opt out.
You pay in at least 5% of your pay and your employer puts in at least 3% – a minimum contribution of 8% in total.
Some employers contribute more than the minimum, and taking advantage of this is one way to boost your pension.
For anyone who is already saving the most they can, here's how to grow your pension pot without adding a penny more.
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