Martin Lewis Drops Simple Pension Rule to Boost Your Retirement Savings
Saving for retirement often gets lost in the chaos of bills, budgets, and the cost of living squeeze. But Money Saving Expert guru Martin Lewis has revealed a straightforward “golden rule” to help you supercharge your pension saving.
Martin Lewis’ “Scariest Pants” Pension Rule
Lewis shared his top tip on ITV’s This Morning, during a live chat with hosts Siân Welby and Dermot O’Leary. When viewer Tanya asked if she was contributing enough to her pension, Lewis didn’t mince words.
“Nobody ever puts enough in their pension,” he admitted, before explaining his “scariest pants rule of thumb.”
Here’s the bottom line: take half your age when you start saving and aim to put that percentage of your income—employer contributions included—into your pension. So, if you begin saving at 37, you should be stashing away 18.5% of your salary yearly.
Start Early, Save More
Using the rule, a 40-year-old should aim for 20% of their earnings. Lewis concedes few reach this target but says:
“The main thing is to start. The earlier you begin, the better.”
Dig Up Lost Pension Pots
Lewis also urged viewers to find any forgotten pensions. He highlighted the pension tracer tool on Gov.UK — a handy resource to track down old pension schemes from previous jobs.
“If you’ve worked in several places and aren’t sure if you had a pension, it’s worth checking,” Lewis said. “You could be sitting on a pension gold mine without realising it.”
Take Control of Your Pension Today
Martin Lewis’s tips provide a no-nonsense guide to tackling the pension puzzle. His golden rule makes a complicated subject simpler and urges Brits to take charge now for a comfy retirement later.
