UK employers must auto‑enrol workers aged 22 to state pension age who earn more than £10,000 a year. Employees may opt out, but they lose free employer contributions and tax relief, and miss out on market growth. Pension Attention spokesperson Mark Smith stresses the importance of starting early and not opting out, warning that the scheme will re‑enrol you after three years. L&G research finds that one in seven new or prospective homeowners cut or stop pension payments to build a deposit, which can hurt retirement outcomes. Katharine Photiou, L&G’s director of workplace savings, says rising living costs force many young people to prioritise property over retirement. A Lifetime ISA can help young workers save up to £4,000 a year for a home or retirement, with a 25% state top‑up until age 50, but early withdrawals (except for a home) incur a 25% penalty. If you receive a pay rise, adding an extra 1% to your pension may be tax‑efficient and could add thousands to your pot. Hargreaves Lansdown’s calculator shows a 22‑year‑old earning £25,000 who contributes 5% (employee) and receives 3% (employer) will have about £155,000 by age 68; increasing to 6% employee and 4% employer raises the pot to £194,000. The advice is clear: stay invested, review contributions at every pay increase, and avoid early withdrawals unless necessary.

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