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Pension: Extra £100 in monthly contributions could boost pot by £15,288 over a decade

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“Whereas, saving this in a cash savings account with an interest rate of 0.2 percent, could provide £1,178 in today’s money terms, with the eroding power of inflation over the year taking effect.”

Time can also pay, Mr Cameron said.

“The longer you can save more, the greater the difference,” he commented.

“Saving £100 per month for 10 years could mean you have £15,288 extra in your pension compared to £9,944 saving in a cash account.

“For those able to save an additional £500 a month over 10 years, this could be £76,440 extra in your pension compared to £49,700 in a cash account.

“Pensions benefit from government tax relief which means that £100 saved into a pension immediately becomes £125 if you’re a basic rate taxpayer.



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