British workers could build up between £13,000 and £23,000 in extra savings by using a simple "one per cent trick", according to new research from HR firm Personio.
The study shows that making this small change over a working lifetime could be enough to cover a year’s rent, buy a new car, or pay for several family holidays.
Despite the potential benefits, many employees are still missing out on this simple way to boost their pension savings.
The research comes as millions of people face the risk of falling short in retirement, with almost half of working-age adults currently not saving enough for later life.
According to the research, 39 per cent of UK workers are on track to miss even a basic standard of living in retirement.
This shortfall represents one of the most significant financial challenges currently confronting the British workforce.
Rising living costs and longer life expectancy mean many people risk their money not lasting through retirement.
At the same time, the standard automatic enrolment contribution rate of eight per cent is often not enough to make up the shortfall.
Pension warning as millions miss out on 'one per cent trick' to boost savings by £23,000
| GETTYExperts warn that relying only on minimum pension contributions can leave workers struggling financially in retirement.
Many people do not realise they are under-saving until it is too late to make up the gap.
Research shows Britons could increase their pension by as much as £23,000 simply by raising their contributions by one percentage point.
For someone earning £30,000 a year, that increase would cost just £25 a month. Workers on £50,000 salaries would need to put aside around £42 a month to make the same change.
British workers could build up between £13,000 and £23,000 in extra savings
| GETTYThese figures translate to relatively minor lifestyle adjustments when compared against common discretionary spending.
A pair of takeaway coffees each week typically costs between £8 and £10, while a Netflix subscription runs to £15-20 monthly. Dining out once a month generally sets people back £30-40.
Channelling these modest sums into a pension instead could generate tens of thousands of pounds in additional retirement income through the power of compound growth over time.
Kurt Bannister, Head of Talent Acquisition at Personio, said: "Making sure people are comfortable and secure in retirement is something we know workers across the UK are worried about. And by preparing in advance, you can take steps to help you have what you need."
Taking action requires checking current contribution levels through pension providers or HR departments
| GETTYHe advised employees to question whether their employer offers contributions beyond the minimum and whether they can personally increase their payments.
For businesses, Bannister noted this presents an opportunity to differentiate themselves in a competitive recruitment market, suggesting that even modest increases could transform staff financial futures whilst strengthening workplace loyalty.
Taking action requires checking current contribution levels through pension providers or HR departments, enquiring about employer matching schemes, and updating settings online through workplace pension platforms.
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