Martin Lewis has outlined 13 pension “boosters” to help workers and pensioners improve their retirement finances. The consumer champion shared the tips in the latest MoneySavingExpert (MSE.com) newsletter, following a recent pensions special of ITV’s The Martin Lewis Money Show.
Lewis warned many people miss out on valuable retirement income because they do not understand how pensions work or have lost track of old pension pots from previous jobs. He said: “People shouldn’t leave thinking about pensions until their hair is greying. Most workers pay hundreds or thousands of pounds into pensions every year from their early 20s, so it’s important to understand how they work.”
Key tips include checking for gaps in National Insurance (NI) contributions, as the full New State Pension currently pays up to £241.30 per week, depending on an individual’s NI record. Lewis urged people to fill missing years to increase future payments. He also highlighted free NI credits for those unemployed, caring for children, or receiving certain benefits.
For workplace pensions, Lewis repeated his “rule of thumb” that workers should consider contributions equal to half their age when they first start saving, including employer contributions. He also warned that over £30 billion is estimated to be sitting in lost or unclaimed pensions across the UK, with the average lost pot containing around £10,000. Savers should track down missing pensions by checking paperwork, contacting former employers, or using pension tracing services.
Other boosters include checking employer contributions are correct, naming beneficiaries on pension accounts, and reviewing investment choices. Lewis cautioned against consolidating pensions without checking for valuable benefits that could be lost, and warned that withdrawing money in the wrong way could lead to unnecessary tax bills.
