Anyone who is in their 40s issued £24,300 pension bombshell warning

People who have delayed starting contributing to a pension have been warned they could face a hammer blow in the form of a lost windfall for when they call it a day at work.

A pensions expert has issued a £24,300 warning to people in their 40s. People who have delayed starting contributing to a pension have been warned they could face a hammer blow in the form of a lost windfall for when they call it a day at work.

Robert Cochran, a pensions expert at Scottish Widows, told the Sun newspaper it is best to start early. If you saved £100 a month into your pension from aged 16, you’d have £46,800 by the time you were 55, without any investment growth, employer contributions, or tax relief.

But, if you started at 40, you’d only have £22,500 - a £24,300 difference. Mr Cochran explained: “Einstein said that compound interest was the eighth wonder of the world, these who know it will grow it, and those who don't will pay it.”

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He also urged people to consider saving into a pension for children. Mr Cochran said: “You can actually pay contributions in for children. So, imagine somebody's born and then you pay in contributions for them till they're age 18... and then you leave that money to grow by the time they're 60.

"That money could be worth £1 million. And that's purely through compound and growth.” Mr Cochran explained: “Go back to your employer and find out the maximum contribution you're entitled to get from them.

“If you're not receiving it, go ahead and ask for it. It might mean that you have to pay a little bit more, but do not leave cash on the table.” Mr Cochran said: “Use the Government's free pension tracing service and find out what you've got.”

Mr Cochran said: “You need to know what you're going to be doing in retirement… so, look towards your future. Use the tools and calculators that are there to help you.”