Would you forgo eating out, watching Netflix, and going to the gym in exchange for a pension increase of £157,000

A modest increase in pension funds could increase your final benefit by tens of thousands of pounds, but it would come at the expense of some of our favorite modern-day pleasures

Could you do it?

If you could increase your pension by at least 157,000 and possibly even retire earlier, would you be willing to forgo Netflix Premium, your expensive gym membership, and your Friday night takeout?

According to a recent analysis by Standard Life, that is the possible trade-off that is available.

Its conclusions demonstrate how, thanks to the power of compound investment growth, even relatively small increases in pension contributions can significantly increase the size of your retirement pot, especially for younger people.

An individual who begins working at age 22 on a salary of £25,000 and makes the required minimum auto-enrollment contributions (5 percent employer, 3 percent employee; this is known as the 8 percent pension rule) could, for instance, accumulate a pension pot of about £210,000 by the time they are 68 years old, adjusted for inflation.

Nevertheless, a mere 1% increase in monthly contributions, or about the cost of a Netflix Premium subscription (18.99), could raise this to 236,000, which would represent a 26,000 increase in current prices.

An even larger pension fund could be accumulated by those who are able to contribute a little bit more each month, such as the cost of a monthly gym membership. Starting at age 22, contributing an additional 42% per month to a pensionless than the typical UK gym membershipcould result in a 52,000 increase.

Additionally, people who are prepared to forgo 60 per month for takeout could eventually increase their retirement savings by almost 80,000.

When combined, these cost-cutting strategies could result in an additional 157,000 or more in retirement.

Standard Life's retirement savings director, Mike Ambery, stated: "You don't have to give up everything you love; it's just about striking the right balance between living for the present and making plans for the future.

"Redirecting a small amount every month, even as little as the price of a streaming subscription, could increase your pension by tens of thousands of dollars by the time you retire. There may be even more long-term advantages for those who can make a slightly larger contribution, like reallocating a portion of their takeout or gym budget.

Assuming 5-percent annual investment growth and 350% annual salary growth. The figures take inflation of 2% into account. A management fee of 075% per year is assumed.

Simple methods to boost pension contributions.

It doesn't have to be difficult to increase your pension contributions. Giving up a few small pleasures can save money for retirement, but not everyone wants to live a Spartan lifestyle just to get their pension. However, there are ways to increase your contributions without compromising your quality of life right now.

1. . Check to see if your employer will contribute more.

If you raise your pension contributions, your employer may match them as well, since some employers will match any additional contributions you make. That is practically free money for you in the future. Checking to see if this applies to you and taking advantage of it is worthwhile.

2. . Make use of salary sacrifice.

Verify whether your employer provides salary sacrifice. These are programs that allow you to contribute to a pension with a portion of your pay. Your retirement savings could increase and your National Insurance contribution payments could decrease as a result.

3. Recall your pension if you received a pay increase.

"When your pay increases, think about contributing a portion of that increase to your pension. "It's a fantastic way to increase your savings without affecting your monthly budget, and you won't miss what you never had," said Ambery of Standard Life.

4. One-time payments can have a significant impact.

Investing a portion of any bonuses, tax refunds, or even birthday money that you don't need right away in your pension could significantly increase your future savings. "It could be worth much more by the time you retire because of compound investment growth," Ambery stated.