Martin Lewis sets out a simple “rule of thumb” for how much people should aim to contribute to their pension, emphasising that starting earlier generally improves retirement outcomes. In a recent appearance connected to the Martin Lewis Money Show, Lewis responds to a question from a viewer who asks whether making 15% pension contributions in their mid-30s is enough without affecting their current quality of life. Lewis says the viewer is “really well” placed with that level. He then explains the method: take the age when you begin pension contributions, halve it, and use that as the percentage of income to direct into your pension for the rest of your working life. For example, if someone starts at 30, the rule suggests 15%. Lewis frames the guidance as a way to show many people may not ultimately reach that contribution level, and as an illustration that the earlier someone starts saving, the better their prospects for retirement. He also notes the advice should be considered alongside the State Pension, which is part of retirement income.
Martin Lewis shares pension contribution “rule of thumb” based on starting age
Martin Lewis sets out a simple “rule of thumb” for how much people should aim to contribute to their pension, emphasising that starting earlier generally improves retirement outcomes. In a recent appe...
- Martin Lewis shares a pension “rule of thumb” tied to the age you start contributing.
- The method is to take your starting age and halve it to estimate a target contribution percentage.
- Lewis uses a worked example: starting at 30 implies aiming for 15% of income.
- He says the earlier people start saving into a pension, the better their retirement prospects.
- He advises considering private pension savings alongside the State Pension.
Do you feel secure about your pension? A 2025 survey by the Financial Conduct Authority found that one-third of people have less than £10,000 saved in their plans, which has been described as “worrying”.And in a recent pension special of the Martin Lewis Money Show, the expert said he has a “rule of thumb” for pensions that “scares the pants off everybody.” What’s Martin Lewis’ formula for pensions? A viewer asked, “Whilst I want to put more into my pension, I don’t want it to affect my quality of life in the here and now. Is doing 15% contributions as someone in [their] mid-30s enough?”Lewis replied that the viewer was doing “really well” with that percentage. Then, he added, “let me give you the rule of thumb that scares the pants off everybody”.“Take the age when you start putting into your pension, so in your case, we’ll say 30,” he said. “Halve it, that’s 15 [percent contribution]. That’s how much of your income you want going in for the rest of your life for a decent retirement. Very few people ever get there.” The “real reason” for the advice, he continued, is to illustrate that “the earlier you start, the better... retirement... you’re going to have”. Of course, he explained, this is in tandem with your State Pension.How can I tell if I have enough saved in my pension? The government has a State Pension Forecast, which will tell you how much you may be entitled to from the government when you reach retirement age. You can also check what your private pension may be worth when you retire.These combined figures should tell you roughly what you can expect to bring in a year once you get your pension. Legal & General suggested “the happiest retirees” have an average total monthly income of £1,700.Related...The Shift In Boys’ Views On Money And Girls That Therapists Are Watching CloselyOG Malcolm In The Middle Star Turned Down 'Buckets Of Money' To Appear In RebootOdds Slashed On Green Party By-Election Victory After Big Money Bets
3 months agoMartin Lewis shared his pension rule of thumb for retirement savings contributions
3 months agoMartin Lewis has shared the pension “rule of thumb” when it comes to saving for your retirement.
3 months agoMartin Lewis has shared the pension “rule of thumb” when it comes to saving for your retirement.
3 months ago
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