The hidden benefit of your workplace pension

Your pension contributions might not feel exciting now, but they’re one of the most powerful ways to build your future income.

Each month, your employer adds a percentage of your salary to your pension, on top of your own payments.

Think of it as free money invested for your future. The more you both contribute, the faster your pension grows through investment returns. Over time, those regular top-ups can make a big difference to your financial security.

Your pension isn’t a deduction, it’s part of your pay.

Workplace pensions in Guernsey

Pension saving across the Channel Islands is evolving.

In Guernsey, employers now automatically enrol eligible employees into workplace pensions, with contributions from both employers and employees.

This underlines how important workplace pensions are for long-term financial wellbeing.

Why your pension benefits matter when changing jobs

When comparing job offers, salary isn’t the full story. A strong pension scheme can be worth more over time than a small pay rise.

An employer contributing 10% instead of 5% each month could add thousands to your pension by the time you retire.

Before accepting a new role, check:

• Employer and employee contribution rates

• Matching terms

• When you qualify for the scheme

By comparing salary and pension benefits together, you can make smarter decisions about your long-term income.

Tax relief: how the government helps

Approved pension contributions in Jersey and Guernsey qualify for income tax relief, reducing the tax you pay on what you save.

If your tax rate is 20% and you contribute £100, your net cost may be around £80 because you don’t pay tax on that amount. But your pension still receives the full £100.

Guernsey have tapered relief on personal allowances and pensions for high earners. Therefore check your figures to make the most of your allowances.

Why it pays to stay in your pension

Opting out of your pension is like turning down a pay rise. Those employer top-ups are guaranteed additions to your future income.

If you’ve taken a break from contributing, it’s never too late to restart or increase payments. Every pound saved today brings more comfort later in life.

Small increases, big impact

Even a small increase in your contributions can make a big difference over time. Compound growth rewards consistency, and small changes now can add up to significant gains later.

A financial adviser can show how adjusting your contributions today could improve your retirement income tomorrow.

How Rossborough Financial can help

At Rossborough Financial, we help clients make the most of their company pensions. Our advisers can:

• Review your current pension arrangements

• Explain contribution options in clear terms

• Forecast your potential retirement income

We’ll help you understand how your pension fits within your wider financial plan, so you can plan your future with clarity and confidence.

Learn more about retirement planning or book a consultation to explore how your pension can work harder for you.

A pay rise for your future self

Your company pension is one of the easiest ways to give your future self a raise. With every contribution from you, your employer and the government, your retirement fund grows faster than you might think.

It’s not just a pension - it’s part of your pay package. And the sooner you make the most of it, the greater the reward will be later.

Book a consultation with our team to see how your company pension can strengthen your retirement plan and secure your financial future.