'Ditch luxuries to boost pension pot'

10th January 2018

Individuals could add up to £1,500 a year to their retirement savings by trimming back on little luxuries, according to research.

Scottish Widows claims the average person spends £124 a month on treats, such as ordering takeaway meals, taking taxis and buying new clothes.

Almost two thirds (62%) of the 5,008 people polled said they plan to set a financial goal in 2018, through either saving more (45%) or spending less (28%).

But at the same time, 32% said they cannot afford to put any more money into their pension pot.

1 in 3 respondents rein their spending in by an average of £109.03 in January, with 30% using this money to pay off debts.

Robert Cochran, retirement expert at Scottish Widows, said:

"January is a time when we set out to improve our financial habits for the year ahead and while it would be unrealistic to suggest we live entirely without little luxuries, there is an important message about the need to ensure untracked spending today doesn't harm our financial security tomorrow.

"Almost 23 million people are failing to save adequately for retirement, and so there is no time like the present to make the first step towards positive change.

"It can also help build a longer-term saving habit and make a real difference to quality of life in retirement."

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