SARAH COLES, analyst, age 44

‘I should have insisted my pension contributions were an essential monthly expense – like the mortgage or gas bill – and cut other costs instead. That way, I might have been able to retire in my 60s, or look forward to a more luxurious retirement.’

Despite having worked in the finance sector, Sarah is as guilty as any of us when it comes to burying your head in the sand over pensions.

She started a workplace pension in her late 20s, paying a small amount, but prioritised other things, thinking she’d pay more when she was older and had more money. But that never happened.

‘I stopped paying into my pension just before having children. I put everything on hold for around seven years until they started school and the childcare bills were less horrifying. At that point I was a single parent, working for myself, so I didn’t have a lot of spare cash for contributions. I also didn’t have an employer to pay into my pension, so I didn’t pay in anywhere near enough.’ She did, however, pay National Insurance contributions, which would go towards her state pension.

Sarah is now back working full time with an employer and playing catch-up. ‘I was shocked to find how much ground I lost and was on track to get less than £7,000 in private pensions in retirement,’ she says.

‘For the last 12 months, I’ve been contributing a total of 20% of my pay (including company contributions). I’ve also moved out of the default fund in the pension. This has the potential to grow faster, and because I expect to be working until I’m 70, I’ve got plenty of time to ride out the ups and downs of the stock market.’

I’m now on track to get about £20,000 in private pensions, plus my state pension – although in my foolish 20s I also contracted out of my state pension because someone suggested it in the pub, so I won’t get the full flat-rate state pension either!’