Since more than half of millennials "rarely think" about retirement savings, here are six strategies to increase your pension

When it comes to pensions , the 29–44 age group is the most uninformed; however, as costs rise and life expectancy increases, they may be especially vulnerable

According to new data, millennials are particularly vulnerable to a retirement shortfall because they are not thinking about their pension enough.

The investment platform InvestEngine commissioned an Opinium survey that found that more than half (51 percent) of this age group "rarely think" about their pension.

Compared to younger Gen Z savers (41 percent) and older Gen X savers (38 percent), this is higher.

With 37% of millennials saying they don't understand how pensions operate, it might be a case of savers burying their heads in the sand.

It is shocking to learn that 45% of workers are not aware that they pay fees for their workplace pensions, and almost one-third mistakenly think that higher fees indicate a higher-quality pension fund.

Currently, many members of this group, who range in age from 29 to 44, are at the pinnacle of their careers and earning potential.

There may be a good chance to boost their pension funds, but the only way to take advantage of this window of opportunity is to fill in the knowledge gaps.

According to Andrew Prosser, head of investments at InvestEngine, "millennials may have simply had fewer reasons to think about and engage with their pension as the generation of auto-enrollment, but this has led to some alarming findings."

The biggest worry is that people don't realize how much of an impact seemingly small pension fees can have on their retirement savings over time. Over time, even tiny percentages can add up to sums that can change lives.

Millennials are especially vulnerable to a pension deficit.

The risk of a pension deficit for millennials is not solely due to ignorance. They may be more susceptible than earlier generations due to rising expenses, longer lifespans, and lower homeownership rates.

According to the most recent statistics from the Pension and Lifetime Savings Association (PLSA), a comfortable retirement now costs 43,100 annually for a single person and 59,000 annually for a couple.

A growing number of pensioners are still burdened with a mortgage or paying rent in retirement, but these figures do not account for housing costs.

According to investment platform Interactive Investor, younger savers in their 20s may require a pension pot worth slightly more than £1 million after accounting for inflation and housing costs if they hope to have a comfortable retirement in 40 years.

People who are willing to settle for a moderate or basic standard of living might be able to make due with less, but even a basic retirement costs 14,400/22,400 annually, while a moderate retirement still costs 31,300/43,100 (singles/couples).

Most households will need to supplement their state pension with private pension income, either in the form of an annuity or pension drawdown, even though the state pension will help with some of the costs.

We offer millennials and people of all ages six strategies to increase their pension.

Six pension-boosting tips.

1. Your pension contributions should be increased

The good news is that you can increase your pension fund, and millennials in particular may have a very favorable window of opportunity.

This generation is now in their late twenties and mid-forties, when many people find their careers and salaries take off.

Most employees make an 8% pension contribution under auto-enrollment rules, with employers making a 3% contribution and employees making a 5% contribution. This typical 8 percent contribution grows in value as your pay rises.

You might feel able to raise your contributions above the typical 8 percent threshold as your paycheck grows. Additionally, if you choose to increase your contributions, some employers will match them up to a certain amount.

Figures we entered into Standard Life's pension calculator show that even a modest increase could have a big long-term effect.

A 36-year-old (a member of the millennial generation) who makes £30,000 annually was our choice, and we increased their pension contributions by 2% over the typical auto-enrollment level.

Assuming a modest annual investment growth rate of 5% and annual investment fees of 0.75% (the current cap for workplace pensions), this modest increase could increase the saver's pension pot by £34,500 by the time they reach state pension age.

Standard Life advises increasing your contributions even further, if at all possible. According to the pension expert, 1215 percent might help you have a comfortable retirement. This covers both your employer's and your own contributions as well as tax breaks.

2. Take salary sacrifice as an example

Some pension savers find that salary sacrifice is a good option because it can increase their pension while also lowering their tax liability. In effect, you and your employer reach a deal whereby you lower your pay in return for a larger pension contribution.

"A growing number of employers now provide these plans that allow employees to lower their bonuses or salaries in exchange for higher pension contributions," stated Alice Haine, a personal finance analyst at the investment platform Bestinvest.

"The reason for this is that lowering your gross pay lowers the amount of income tax and National Insurance contributions that both the employer and the employee must make.

You lose some tax benefits when you move into a higher tax bracket, so sacrificing your salary could be a particularly wise choice if you are nearing the higher or additional-rate tax threshold.

You can earn less tax-free interest on savings, for instance, because the personal savings allowance is cut in half for higher-rate taxpayers (from £1,000 to £500) and completely eliminated for additional-rate taxpayers.

When your annual income reaches £100,000, you also begin to lose your personal allowance, which means that less of your pay is tax-free. An annual personal allowance of £12,570 is provided to employees who make less than this amount. You forfeit one of the allowances for every two taxable earnings that exceed the threshold once it is crossed.

"Those earning between 100,000 and 125,140 under the current rules are effectively paying an eye-watering effective rate of income tax of 60 percent on that portion of their income," Haine stated, adding that the loss of the personal allowance and the 40 percent income tax rate for higher-rate earners are combined.

3. Evaluate the pension fees

Currently, workplace pension fees are limited to 0.75%; however, older funds may have higher fees, so it's crucial to verify what you're paying. Searching for a fund with cheaper fees could help you stop the erosion of your returns over time.

Concerningly, according to InvestEngine, nearly a third of millennials mistakenly think that a higher fee means the fund is of higher quality, and 45 percent are not aware they are paying fees on their workplace pension.

For every ten in your pension, you will pay 7 points 5p annually if the annual management fee is 0.75%. Your annual payment will be 75 if your pension is 10,000. 750 will be paid if you have 100,000.

It would be 4p a year for every 10 in your pension if this were reduced to a 0.4 percent annual management fee. For example, if your pension was 10,000, you would have to pay 40 annually.

These amounts can add up over time, especially when you also account for investment growth.

4. Examine your investment portfolio

Taking your pension's investment mix into account is another piece of advice. In order to mitigate volatility, younger savers should typically take on greater risk than their older counterparts because they have a longer investment horizon.

As a result, they ought to be invested in more volatile assets, such as international stocks, which have a higher potential for return than cash or bonds.

You are typically placed in a default fund when your employer enrolls you in a workplace pension plan. If it's okay with you, check out the other funds available and see if they better suit your requirements.

Since most millennials, who are between the ages of 29 and 44, still have at least 20 years of work ahead of them, it is too early to begin de-risking their pension by making significant investments in lower-risk assets like cash and bonds.

5. Make a tax reduction claim

You are eligible for tax relief on your pension contributions when you make contributions. In essence, this is a refund of your income tax, paid at your marginal rate (20, 40, or 45 percent).

You won't have to apply for any tax relief you are entitled to if you are a member of a "net pay" pension plan, where pension contributions are made prior to your taxes.

You might need to take action, though, if you are a member of a "relief at source" pension plan, in which contributions are made after taxes are subtracted. Higher and additional-rate taxpayers must file a tax return to claim the remaining amount; the first 20% will be refunded automatically.

Self-invested personal pensions, or SIPPs, are typically "relief at source" plans, whereas the majority of workplace pensions are "net pay" plans. It's always worthwhile to check again.

6. Track down pensions that have been lost

Last but not least, most of us switch jobs multiple times during our careers, which can cause us to lose track of our pension savings. According to PensionBee, an online pension service, almost one in five adults believe they belong to this group.

By getting in touch with previous employers and learning who provided the pension, you can locate an old pension. Next, contact them and ask them about your retirement funds. Typically, you'll need your N.I. number and information about your employment history.

A free pension tracing service is also offered by the government.