If you are retirement planning in Oswestry or Cheshire, changing the way people manage their finances now could prove rewarding in the longer run. Financial experts have highlighted the potential major benefits of minimising the amount of money spent unnecessarily on monthly subscriptions.
So how does it work? People can save money by cancelling subscriptions and direct debits and putting that money into a pension. This simple act could provide a big boost to savings in later life.
Across the UK, millions of people all too often forget about services they no longer use. Recent data collected by Standard Life shows that the average Brit spends approximately £39 each month on unused direct debits, which might seem tiny, but accumulates to something more sizable over a lifetime.
If you started working life in your twenties on a £25,000 salary and paid minimum pension contributions via the auto-enrolment scheme, you might end up with £210,000 by retirement age. By cancelling £39 of monthly subscriptions, that retirement pot may rise to as much as £247,000, a £37,000 increase (in 2026 money).
By cancelling monthly gym membership and premium streaming products, you could save around £78 a month. Putting that money into a pension pot could see you increase your pension by £73,000 come retirement.
At present, auto-enrolment is available to anyone in the UK aged between 22 and state pension age. That person must earn more than £10,000 annually with a single employer.
