Martin Lewis has shared a simple 'rule of thumb' for pension savings during a special episode of his ITV show. The MoneySavingExpert.com founder advised viewers to halve the age they started paying into their pension to determine the ideal contribution percentage.
Answering a viewer's question, Lewis explained that if you start saving at age 30, you should aim to contribute 15% of your income for the rest of your working life. He acknowledged that few people achieve this, but emphasised that starting early significantly improves retirement prospects.
The state pension also plays a role, depending on National Insurance contributions. According to the Pensions and Lifetime Savings Association, a minimum retirement lifestyle costs £13,400 per year for a single person, while a comfortable retirement requires £43,900 annually.
Currently, private and workplace pensions can be accessed from age 55, rising to 57 in April 2028. The state pension age is 66, set to increase to 67 and eventually 68.
