Brits could boost their pension by thousands of pounds by retirement if they paid themselves an annual Christmas contribution bonus, according to a new analysis by PensionBee.

The analysis showed that, if Brits were to invest an extra £200 as an additional contribution to their pension this Christmas, they could add between £305 and £521 to their pension pot, depending on how far off they are from retirement.

Adding an additional £400 could boost their pension pot by between £608 and £1,039 ahead of retirement.

"Crucially", if Brits consistently made similar additional contributions each Christmas, a 25-year-old today could accumulate an extra £16,483 by retirement with a £200 annual Christmas contribution pension bonus or £32,970 with larger contributions of £400 each year, PensionBee found.

For those closer to retirement, an annual contribution of £200 could raise an extra £3,528 towards their retirement fund, rising to £7,056 with a £400 contribution.

PensionsBee director of public affairs, Becky O'Connor, commented on the findings: "With Christmas just around the corner, it's a great time for savers to reflect on their festive spending habits and consider whether some of that money could be redirected into their pension.

“Even contributing a small amount can see savers benefit hugely from the power of compounding interest and tax incentives from the government, significantly boosting retirement savings over time.

"Adding a lump-sum "Christmas contribution bonus" into your pension is straightforward, and your future self will thank you for it."

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