Millions of home workers could boost retirement pots by £160,000

STANDARD LIFE, PART OF THE PHOENIX GROUP, SAYS THAT EVEN A HYBRID WORKING SETUP COULD SIGNIFICANTLY INCREASE RETIREMENT FUNDS. 12:16, 21 May 2025Updated 12:19, 21 May 2025 Millions can boost

their pensions by working from home - and ditching the daily commute. Standard Life, part of the Phoenix Group, says that even a hybrid working setup could significantly increase retirement

funds. A typical commuter who works in the office five days a week spends around £3,454 annually on travel. But someone who works from home three days a week could cut that cost to just

£1,381.60, saving £2,072.40 each year. The insurer estimates that a 22-year-old earning £25,000 a year and making standard auto-enrolment contributions could accumulate a pension pot of

£210,000 by the time they reach 68. READ MORE NEW UK PRIMARY SCHOOL DINNER RULES WITH SOME STAPLES BEING 'BANNED' Mike Ambery, Managing Director for Workplace Pensions at Standard

Life, said: “Since the pandemic, flexible working options have given workers a number of opportunities, including the ability to save on their commuting costs. Article continues below

"While it’s tempting to use any savings to help with the short-term, directing them into your pension could have a really powerful impact over time. “Our calculations highlight how

working from home for even one day a week could make a huge difference to your eventual pension pot if you were to pass those savings on in extra pension contributions over the course of a

career, thanks to the power of compound investment growth. “With most UK adults currently under-saving for retirement, it’s never been more important for people to consider when and how they

can top up their pension to maximise their retirement income.” Article continues below Catherine Foot, Director of Phoenix Insights, the group’s longevity think tank, said: “While working

from home isn’t for everyone, flexible work can be a game changer in helping workers balance employment alongside caring responsibilities, or to better manage their physical or mental

health. “Having flexibility over the location and hours worked is particularly important to employees aged 50 and over, playing a key role in helping them think differently about when and

how they work, save and retire. “This could make a vital difference in ensuring they are able to stay in work for as long as they need or want to, reducing the likelihood of them falling out

of the workforce, enabling them to save for their retirement.”