Martin Lewis shares one pension tip Britons should follow

Martin Lewis shares top pension tip for everyoneSource: This Morning, ITV

Transcript

00:00 The rule would say you need to put in 18.5% of your earnings.

00:04 That includes anything your company is putting in.

00:06 And these days, most people are employees of everyone is an employee.

00:08 They're in the auto enrollment system.

00:10 So the company does some matching contributions.

00:12 If you started at 37, you'd want to put in 18.5% of your income

00:17 for the rest of your life to live on a really good retirement pension.

00:21 Now, nobody does that.

00:22 So everybody listening going, I'm not anywhere near that money on 4%.

00:25 Don't worry. It's fine.

00:27 The real lesson to that is the earlier you start, the better.

00:31 So if you start at 20, half of 20 is 10.

00:34 And then whenever you get a pay rise, if you can afford it,

00:37 we're in a cost of living crisis. This doesn't work for anyone.

00:39 I know I get it.

00:40 But let's say you've got a pay rise and you were given a thousand pounds

00:44 a year extra. Try putting a quarter of that in to your pension

00:48 before you get it in your pocket, before you've got the new amount of money,

00:50 before you've got used to it and try and push up your pension contributions.

00:54 But how much should I be putting in the pension?

00:56 And the answer to virtually everybody is a bit more.