AN easy change to how you manage your money could unlock up to £37,000 in free cash for your retirement — yet millions are missing out without even realising.
Experts say cancelling forgotten direct debits and redirecting the money into a pension could dramatically boost your savings for later life.
In the UK, millions of people are unknowingly wasting money every month on forgotten subscriptions and services they no longer use.
New analysis from Standard Life shows that redirecting this spare cash into a pension instead could make a huge difference by the time you retire.
The average Brit splashes £39 a month on unused direct debits, according to the firm.
While that might not sound like much, over a working lifetime it can seriously add up.
Someone who starts work at 22 on a £25,000 salary and pays the minimum pension contributions under the auto-enrolment scheme could end up with around £210,000 by age 68.
This assumes that you contribute 5%, that your employer contributes 3% and that you get a 3.5% pay rise over time.
But if that same person cancelled £39 a month worth of unwanted subscriptions and paid it into their pension instead, their retirement pot could rise to £247,000 – a boost of £37,000 in today’s money.
The gains could be even bigger for people with more wasted spending.
Anyone throwing away £78 a month, the cost of an average gym membership plus premium streaming and music services, could increase their pension by a massive £73,000 by retirement.
Auto-enrolment is available to anyone aged between 22 and state pension age, who earns more than £10,000 a year with a single company.
You don’t have to apply either as you’re automatically opted in.
Mike Ambery, retirement savings director at Standard Life, said: “Unused direct debits have a habit of quietly draining our bank accounts in the background.
“The new year is often a time people focus on their physical health, but it’s also the perfect moment to think about your financial wellbeing too.
“Redirecting just a few of those forgotten payments into your pension could make a meaningful positive impact to your financial future.
“However, it is important to double check terms and conditions of cancelling any direct debits or subscriptions to avoid potential penalties or impact on your credit scores.”
He added: “If your retirement is decades away, pensions might not feel urgent but small changes made early on can have an outsized impact thanks to tax relief and the potential power of compound investment growth.
“A financial reset in January can make a meaningful difference to the income you’ll have in later life.”
Top tips to get to grips with your pension in 2026
MIKE Ambery, retirement savings director at Standard Life, has shared his tips.
- Check what you’ve already saved: Standard Life says the first step is understanding how much is already in your pension. Many workers only have a vague idea of their pot’s value, particularly if they’ve changed jobs several times. Checking your latest statement or logging in online can quickly show whether you’re on track.
- Top up if you’re falling short: If there’s a gap, even a small monthly contribution can make a difference. Money freed up from cancelling unused subscriptions or cutting back on everyday spending can help boost your pension over time.
- Review your retirement age: It’s also worth checking when you plan to retire. Most workplace and private pensions can usually be accessed from age 55, rising to 57 from 2028, which could affect how much you need to save.
- Use your tax allowance before the deadline: With the end of the tax year approaching, savers can normally contribute up to £60,000 a year, or 100% of their earnings if lower, and benefit from tax relief. Some people may also be able to carry forward unused allowances from the previous three years.
- Track down lost pensions: Experts urge workers to look for old pension pots from previous jobs. The government’s Pension Tracing Service can help locate missing schemes, and getting everything organised now could reduce stress and boost your retirement income later.
