Have You Noticed Your Pension Isn't As Big As It Should Be?

If you’re employed in the UK, you probably think your workplace pension is simple:
✅ Your employer contributes
✅ You contribute
✅ Together you’re building a retirement pot

But here’s the catch: most auto-enrolment pensions are based only on “qualifying earnings” not your full salary.

That means contributions are only applied to income between £6,240 and £50,270 (for 2025/26).

So, if you earn £100,000, your pension contributions aren’t being made on £100k. They’re only being calculated on the part of it between £6,240 and £50,270 (i.e. £44,030), leaving a big gap between what you think is going in and what actually is.

✨ Your One Simple Step this week

Review your payslip (or ask HR) and check
Are your contributions calculated on qualifying earnings or your full salary?

If it’s only qualifying earnings, could you increase your personal contributions (or negotiate with your employer) to make sure you’re putting away as much as you want.

Why this matters:
📉 Many people are underfunding their retirement without realising.
📈 Small adjustments now can mean tens of thousands more when you retire.
🔎 Knowing the rules puts you back in control.

Don’t assume your pension is working as hard as it should.
One 10-minute check today could add years of comfort to your retirement later.

To your financial freedom,
Pernia | Your Finance Travel Buddy ✈️💜

P.S. if you’re thinking about how much you need to be putting into your pension now to retire comfortable, this calculator from Pension Bee will help you model retirement scenarios to figure out how much you might want to aim to put away now