Research from the Institute and Faculty of Actuaries (IFoA) has revealed the six life choices that could hit a pension pot by hundreds of thousands of pounds.
The IFoA has been investigating potential barriers people face when saving for retirement.
Its report looked at how various scenarios that affect pensions savings and also how this resulted in pension gaps.
The report identifies six significant moments throughout life where the decisions made by an individual can have the biggest impact on retirement savings, creating pensions gaps.
Individuals who do not start a pension were most at risk of losing out. Early contributions make a big difference; for a young saver, starting a pension at age 35 instead of 25 could mean their pot is only £500K at retirement instead of £800k.
The research set out recommendations to address these pensions gaps with advice targeted at governments, employers and individuals.
The focus of recommendations includes creating long-term equitable pension policies, proactive steps by government and employers to provide support around saving and pensions, and ensuring people take individual action to protect themselves against pension gaps.
Alexandra Miles, of the IFoA Pensions Gap working party, said: « It is concerning that an individual could stand to lose a staggering amount of money during some of the most significant moments of their lives.
« On top of this, they may be largely unaware of these hidden costs and the drastic impact that short-term decisions can have on their pension savings over the long-term. Some may be faced with multiple significant moments throughout their lifetime, further compounding the issue.
IFoA President Kartina Tahir Thomson said:“The numbers presented in this report are stark. When we are making some of the biggest decisions in our lives, it is worrying that so much is at stake.
« On top of this, many people are unaware of the hidden costs of their decisions that may not impact them until years later, during what could be considered the most vulnerable years of their life.
According to the IFoA these are the six life choices that can make a break a pension by up to £1m.
Not starting a pension at 25 and waiting until age 35, could lose a saver £300,000 over a lifetime
Opting out of a pension for five years, could cost up to £100,000 by retirement
Not taking advantage of extra employer contributions, these are worth at least £100,000 over an average working lifetime
Six months maternity leave, choosing to freeze your pension during maternity leave can cost £30,000
Getting divorced, can cost an ex partner £77,000
Moving from full time to part time work can lose up to £200,000
