Three pension tweaks could hand workers £243,000 more in retirement

Workers could add a staggering £243,000 in retirement savings - simply by making three easy changes to their pension habits, new figures reveal.

With the State Pension climbing 4.1% this week to £11,973 a year, the rise will be welcome - but it remains far short of the amount needed for a comfortable retirement.

Now, experts at interactive investor, Britain's second-largest investment platform, are urging savers to take control of their pensions - with three modest tweaks that, over a working life, could make a life-changing difference to their retirement pots.

Work for a boss who pays more into your pension

A worker earning £35,000 could see their pension boosted by £116,700 just by switching jobs to an employer who pays 5% into their pension instead of the minimum 3%.

Those earning £60,000 or £100,000 could bank an even bigger bonus of £197,700 or £328,200, respectively - a difference that could decide the line between comfort and hardship in retirement.

Use salary sacrifice - and reinvest the savings

Thousands of workers are still missing out on the benefits of salary sacrifice - a scheme that lowers your official salary in return for direct pension contributions.

Not only does this mean lower tax, but basic-rate taxpayers also save 8% in National Insurance, money which can be redirected straight into your pension.

A worker earning £35,000 and reinvesting their monthly NI saving could grow their pot by £27,600 over 40 years - and that's at no extra cost.

Put £50 of your next pay rise into your pension

Think £50 won't make a difference? Think again.

Someone who invests just £50 a month from a pay rise into their pension over 40 years could retire with an extra £98,900.

And thanks to tax relief, the real cost is just £40 for basic-rate taxpayers - and even less for higher earners.

Put all three steps together, and an average earner on £35,000 could retire with £243,200 more - a tidy sum that could fund 10 years of luxury travel or help support loved ones.

The benefits will be even bigger for higher earners. For example, someone with a salary of £60,000 a year could achieve a boost of £312,400, while someone on £100,000 could achieve a huge bump of £454,800

"It's encouraging that you don't need to be a high earner to make a massive difference to your pension," said Camilla Esmund of interactive investor.

"Something as simple as filling in a salary sacrifice form or checking your employer's pension policy before taking a job could add tens of thousands of pounds over your career."

Interactive investor is now urging workers to "dare to compare" their pension fees using a new online tool, warning that hidden charges can quietly erode savings by tens of thousands.

Craig Rickman, Personal Finance Expert at interactive investor, added: "These aren't complicated strategies. But together, they could transform how you live in retirement - particularly for those on modest incomes."