Small Switches for Big Pension Savings

These 5 Small Changes could Help you Save £500 To Your Pension Every Month

Freeing up cash to put into your pension savings can be difficult, especially if you’re already on a tight budget. But a few simple lifestyle changes can give you extra funds to invest in your future.
Small Switches for Big Pension Savings

Pension planning is something many people avoid, especially when they’re already living on a tight budget. But you’ll be grateful you set some cash aside when you reach retirement age!

Even if you think you have no spare cash for a pension fund, a few small changes could help you free up over £6,000 a year.

All it takes are a few tiny changes to your budget, like these 5:

Dine In

Dine In

On average, people in the UK eat out around six times a month. At a meal of around £53, that’s an annual bill of £4,000 per person.

You can still enjoy the occasional meal out or celebration at a restaurant and make a tidy saving by eating at home.  Start by creating up a weekly meal plan and shop for a week at a time. Try to cook enough for two or three portions and freeze the leftovers for those days when you don’t feel like cooking.

What You’ll Save

Eating out only 25% of the time could bring you a yearly saving of around £3,000 – which works out at an additional £250 for your retirement savings pension every month.

Pack your own lunch

Pack your own lunch

It’s so tempting to splurge on a shop-bought lunch during a busy workday, but bringing your meal to work could save you a staggering amount. The average person spends around £1,840 buying themselves lunches.

In comparison

Those who packed their lunch spent, on average, only £552 annually.

Packed lunches don’t need to be a soggy sandwich. There are numerous options of exciting homemade meals to you could be enjoying at the office – from leftovers of your dinner to online-inspired snacks.

What You’ll Save

Bringing your lunch from home could save you as much as £1,300 a year. This works out at an extra £108 a month for your pension.

Forget the Takeaway Coffees

Forget the Takeaway Coffees

Grabbing a cappuccino to go can come with a £2.50 bill, which is why many Brits spend over £608 every year on their caffeine fix.

You don’t have to quit your coffee all together – just give your local coffee spot a skip. Brew a fresh pot of coffee at home, and pop it in a Thermos to keep you going during your workday. If you’re aiming to become a home barrister, a stove-top Moka pot offers a cheap option, working out at only £41.40 annually.

What You’ll Save

Making a pot of coffee at home instead of stopping at the coffee shop on workdays could save you as much as £566 every year. That works out at a monthly saving of £47.

Buy Own-brand Products

Buy Own-brand Products

Shoppers who forgo branded goods in favour of supermarket own-brand products saved an average of £1,200 a year. While the savings might seem huge, you probably won’t even notice a difference in quality between the supermarket’s own-brand products and your old favourites.

Choose unbranded groceries at the supermarket to see the amount on your receipts start shrinking. And a supermarket loyalty card and you’re in for substantial savings.

What You’ll Save

This small change could bring your bills down by £1,200 annually and could give you an extra £100 to put towards your pension every month.

Buy Own-brand Products

Switch Suppliers

Changing service providers can be a quick way to reap big savings. Switching to a better deal on energy could save some UK households between £200 and £3001. To save on energy, compare your plan to the best deals – which are on average around £765 annually for gas and electricity. Consider paying by direct debit, as suppliers often offer better prices with this method of payment.

But that’s not all

Switching bank accounts could net the average Brit an extra £116 a year.

Most banks have a service that will allow you to switch your account with little hassle, and they’ll move transactions such as salaries, direct debits and standing orders for you. Some banks even offer a cash bonus for making the switch.

What You’ll Save

Switching both your utility and bank accounts could save you as much as £316 annually. This would give you £26 to put towards your pension every month.

Got Questions? Check These First

Can Consolidating My Pensions Increase My Pensions Savings?

What Changes Can Help Me Increase My Pension Savings?

How Can Switching Suppliers Give Me More Pension Savings?

Can Lifestyle Changes Give Me More Pension Savings?

In Conclusion

All of these small changes could add up to an extra £531 in your pension pot every month. And there are endless ways of saving, such as reducing your food wastage, cycling or walking to work, saving your change and putting any money you earn in a pay rise into your pension fund. These small tricks could translate into significant savings for your retirement.

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