Pension savers will now be putting away more in their pots, as part of an increase in auto-enrolment minimum contributions, from 5% of qualifying earnings to 8%.

Savers could be short-changed by as much as £40,000 unless changes are made to the way auto-enrolment minimum contributions are calculated.

As auto-enrolment minimum contributions are set to rise from 5% to 8% in April, new analysis show has shown the cost of opting out of a workplace pension scheme.

Pensions auto-enrolment has been one of the few, consistent bright spots in the UK pensions market over the past decade. But with higher contributions on the way soon the DWP will need to keep a close eye to ensure that the wheels on the trolley don’t come off.