Towards the start of our career – while paying off uni and saving for a house - it’s natural to pause for thought about your workplace pension (a saving plan that you and your generous/legally-bound employer pay into, which unlocks when you retire).

After all, you’re forgoing some of the money that you need in order to prepare for the unimaginably distant future.

While a workplace pension is organised automatically when you join a company, you have the right to opt out of it. But truly, pensions are the money-savvy thing to do, even at the start of our careers.

Not convinced? Here are seven reasons to opt in.

1. It’s the most legit form of not paying taxes

You don’t need a tucked-away bank account in the Cayman Islands to get clever with your taxes – a workplace pension does the same job for you. Because it’s not taxed, you can either put in £100 in your pension, or it will get taxed and you’d get only £80 extra in your bank account (or just £55 if/when you pay the highest tax rate).

2. You get free money

And who doesn’t like free money? Not only does a pension turn £80 into £100, but your employer has to contribute at least 3% of your pay on top. Plenty of employers contribute more than that though, especially when you pay in more.

Companies factor in this benefit when they employ you, so opting out is effectively like saying ‘no thank you, you can keep the extra salary you’re trying to give me’.

3. Your money is likely to grow

The money you pay into a pension is likely to be invested in the stock market. The idea is to grow your money over the longer term, resulting in a bigger pot for you when you retire. The key here is that your investment returns are reinvested, which also get investment returns. This is called compounding, and trust me, you want this on your side.

4. You won’t miss what you don’t have

‘Tis a wise life philosophy. Because the funds are whipped away at the same time as your tax and National Insurance contributions – i.e. before you’ve had a chance to become accustomed to a certain lifestyle – you won’t even notice a difference.

It’s way more doable than transfers into a savings account, where you can feel the money prised out of your tensed-up hands.

5. The earlier you start, the easier life gets

As soon as you start work, your “earnings window” commences. This is the time you have to earn money before you give up work, and typically lasts from age 20 up to your 60s.

You want to make the absolute most of your earnings window, so start saving early, even if it is a small amount.

The longer you save for, the better.

6. You stay in control of your money

Even if you only stay in a job for short time, you won’t lose your pension. In fact, you can easily amass lots of tiny pensions into one chunky pension to make life a bit easier. You can also pick what kind of schemes you invest in.

7. ‘Future You’ will thank you

At retirement age, Future You will want to go back in time and give Current You a big pat on the back: your wise choices and efficient use of your money will help massively in retirement.

You’ll have more choice about when to retire, and the income means not only will you spend your days free of work duties, but you can do it in some comfort. And that pay-off seems worth the sacrifice.

Disclaimer: Although endeavours have been made to provide accurate results and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. For specific advice, please speak to a regulated financial adviser.

7 Reasons why you shouldn’t opt out