AE contribution hike 'could make £100,000 difference' in retirement

From 6 April, contribution rates associated with auto-enrolled pensions will rise from 5% overall to 8%. Broken down, this means employees will have to contribute 5%, while employers will contribute at least 3%. At a very basic level then, the increase will mean a worker with an annual salary of £20,000 will accrue £1,600 a year into their pension - up from the current £1,000. Using that as its starting point, Interactive Investor has calculated that a 30-year-old with a starting salary of £20,000, increasing by 1% each year until retirement at age 67, should be tens of thousands of p...