The UK’s largest pension tracked by the Office for National Statistics (ONS) stands at roughly £11million, a Freedom of Information (FOI) request reveals.

According to figures collated in 2022, it’s estimated that some 929,000 savers have accrued pension wealth of £1million to £2million, with 128,000 sitting on pensions price as much as £3million. Meanwhile, 46,000 traders are sitting on pensions price greater than £3million.

However, the ONS estimates individuals have to have a pension wealth of £374,500 to be among the many prime 10 p.c of retirement savers, with the median or typical determine within the prime decile standing at £637,500.

For a snug retirement, wealth administration agency RBC Brewin Dolphin calculates that an individual wants no less than £37,300 per 12 months to reside on. To hit that concentrate on, the retiree would wish a pension wealth of £630,000 in at this time’s cash.

While this determine could sound daunting, specialists at RBC Brewin Dolphin have shared some “powerful weapons” individuals can use to plan higher for retirement.

Rob Burgeman, funding supervisor at RBC Brewin Dolphin, stated: “Building a war chest for retirement can seem extremely daunting at first, but money saved regularly over long periods can produce quite dramatic results, as the ONS data demonstrates.

“Whatever your income, there are a couple of powerful weapons to be aware of in your armoury when planning for retirement.”

First and foremost, Mr Burgeman suggests individuals pay shut consideration to the tax reliefs on provide and extra importantly, take advantage of them.

He defined: “Making use of tax reliefs is crucial. A basic rate taxpayer saving £80 of take-home pay into a pension gets a £20 top-up from HMRC, making a total investment of £100 - or an instant return of 20 percent.

“Then there’s the mathematical phenomenon of compounding - or interest on your interest. Albert Einstein called it ‘the eighth wonder of the world’ — and who are we to argue with the great man?

“Factoring in tax relief, a £100-a-month plan would only actually cost an investor £80 per month, bringing total contributions to £9,600 after ten years.”

But as an individual’s pot grows, they achieve curiosity on their elevated quantity, which means their pension wealth might “balloon” to £15,592, assuming 5 p.c annualised returns after charges.

However, Mr Burgeman famous: “The miracle only becomes greater over longer time horizons. Over 20 years, the same plan could see contributions of £19,200 more than double to £41,274. Another decade still and £28,800 could become £83,572. After 40 years, contributions of £38,400 could soar to £153,237.

“There’s no question that the magic of compounding mixed with some sound tax advice makes for an extremely potent cocktail.”

While an £11million pension pot is untenable for a lot of, Mr Burgeman stated “it’s possible” for individuals “even on modest incomes” to achieve millionaires’ row by the point they retire.

He defined: “The Government recently announced it would be supporting a private members bill which would reduce the age of auto-enrolment from 22 to 18.

“Someone entering the workforce today aged 18 and paying £389-a-month into their pension could reasonably expect to retire with a £1million pot aged 68 assuming annualised returns of five percent after fees.”

He added: “Remember, pensions are one of the most tax-efficient ways of funding your retirement. A £10,000 contribution costs a basic-rate taxpayer £8,000, and a higher-rate taxpayer just £6,000 due to tax savings.”