£18,000 Part-Time Worker — Pension Contributions

Even on a modest part-time salary, workplace pensions deliver exceptional value. This scenario shows why opting out costs you more than staying in.

Key Figures

• Salary: £18,000
• Your contribution (5%): £900/year (£75/month)
• Employer contribution (3%): £540/year
• Tax relief (20%): £180/year
• Total into pension: £1,620/year — for a cost of just £720 in reduced take-home pay

Why Not to Opt Out

Opting out means losing £540/year in employer contributions and £180/year in tax relief. Over a 30-year career, that's over £21,000 in free money — before any investment growth.