Money Saving Expert founder Martin Lewis has warned UK workers they could be 'throwing money away' with one mistake. The consumer expert was fielding calls on ITV's This Morning on Wednesday morning over the ongoing cost of living crisis.
He was on the show to help out Brits face rising energy bills, gas prices, food grocery shop bills, rises in council tax, National Insurance contribution hikes and more, Birmingham Live reports. One of the questions came from Emma, who asked Martin about joining a workplace pension at the age of 66 through auto enrolment.
He told her: "The minimum contribution is 8% of your salary, in which case the firm must put a minimum 3% in. If you opt out, you are essentially giving away a pay rise - they are giving you 3% extra.
"You lose a bit of take home pay, because you are contributing 5%, but that is extra money you are getting in your pay packet." Martin added: "As a general rule, you really don't want to opt out of your workplace pension as you are giving away a pay rise."
The cost of living in the UK has increased at its fastest rate for four decades as soaring energy bills put millions of households under pressure. Consumer Prices Index inflation rose to 9% in the year to April, up from an already high 7% in March, the Office for National Statistics (ONS) said.
It was the fastest measured rate since records began in 1989, and the ONS estimates it was the highest since 1982. A large portion of the rise was due to the price cap on energy bills, which was hiked by 54% for the average household at the start of the month.
