9 hours ago

We all know we are supposed to put something away for a rainy day, including our old age, it is just hard to find the money.

A recent report suggested more than three-quarters of workers are set to miss out on a moderate standard of living in later life.

But there is a simple check you can do now that could put you in a more comfortable financial position when you get older.

It will help make sure you don't miss out on free money from your employer. You may even find out you are already saving for your retirement without realising it.

Most workers aged 22 and over, and earning more than £10,000 a year (or £192 a week; or £833 a month) should automatically see some of their wages transferred to pension savings.

If you've no idea whether that includes you, then experts say:

• the best way to check is by looking at the deductions on your wage slip
• if that's confusing, then check with you HR department or whoever does the payroll at work

Usually, 5% of your salary will go into a pension savings pot (this is an additional pension pot, separate from what you'll eventually receive in a state pension).

If you don't put this money into a pension, it will be taxed, so you will lose some of it anyway.

Crucially, your employer will then add money into the pot, the equivalent of at least 3% of your wages.

This is money you can only access in retirement, so if money is really tight then you can opt out and have the money in your wages now.

But the more money saved and invested now, the more it will grow over time, data shows.

Four things you need to know

1. If you earn less than £10,000 a year, but more than £6,240 a year (£520 a month, or £120 a week), and you ask to join your work's pension scheme, then your employer must put in some money too
2. Women in particular would benefit from saving early, experts say, because they are more likely to take career breaks to care for kids or relatives as they get older
3. If you have more than one job and all pay under £10,000 a year you will not be automatically enrolled into pension savings, so if you have multiple jobs it is worth looking hard at how to save for your retirement
4. Under 22s are not currently part of the scheme. The government is considering lowering the starting age to 18, but says the extra cost to businesses need to be considered too