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Martin Lewis warns Brits in their 20s and 30s how much they should be putting in their pension

Martin Lewis warns Brits in their 20s and 30s how much they should be putting in their pension

The money mogul revealed how you can work out how much you should be putting in your retirement fund

Most Brits are well aware of how much of an advocate Martin Lewis is for pensions by now.

The Money Saving Expert regularly stresses the importance of investing into your retirement fund if you want to avoid a ‘cold, baked bean future’.

The majority of people in their 20s and 30s in the UK don't give their pension pot much thought, as the day we hang up our hats for the final time at work seems such a long way off.

You see the deductions for it on your pay slip, but that's as far as it goes.

Other people are borderline neurotic about the cash they're stashing away for the future - but at the end of the day, none of us are that clued up on how much we actually need to be funnelling into it each month.

During an interview on ITV's This Morning, Lewis revealed the answer and shared his rule of thumb for deciding how much you should set aside.

Take a look at this:

While he was on the show fielding questions from Brits keen to get his expert opinion, someone asked: "Am I paying enough into my pension?"

Lewis said: "Well, the answer to virtually everybody is no. Nobody ever puts enough in their pension - very few people do."

The finance whizz said there is a bit of a guideline you can follow to make sure you have a happy and comfortable retirement, but admitted that 'no one lives up to it' in the end.

He explained that if you take the age you are when you start putting in your pension pot and halve it, you should aim to put this percentage of your pre-tax salary each year until you retirement.

For example if you started at the age of 20, your pension contribution goal should be 10 percent each month.

A lot of Brits don't know how much they should be putting in their pensions.
Getty Stock Image

Lewis added that this figure 'includes anything your company is putting in', explaining that most workplaces have auto-enrolment pensions these days with a minimum contribution level of 8 percent.

He told viewers: "If you started at 37, you would want to put in 18.5 percent of your income for the rest of your life to live on a really good retirement pension.

"Now, nobody does that - so everybody listening going, 'I'm no where near that' - don't worry, it's fine. The real lesson to that is the earlier you start, the better."

The point Lewis is trying to make is that you should be putting as much as you can in your pension if you can afford it - and that 'virtually everyone' needs to be putting 'a bit more' in.

He suggested that if you get a pay rise, you could put a significant chunk of it straight into your retirement fund.

The Money Saving Expert shared his rule of thumb for pension contributions.
Karwai Tang/WireImage

"Before you get it in your pocket, before you've got used to the new amount of money, try and push up your pension contributions," the Money Saving Expert said.

According to the money mogul's website, there are a couple of tricks you can use to bolster your future bank account.

It says: "Make sure you put at least the same proportion away. If you've asked your employer to take a proportion of your salary, then your pension contributions will increase as your pay does.

"But if you're saving a monetary amount each month, say £100, make sure you increase it every time you get a pay rise so it's the same proportion of your salary. Increase contributions if you can.

"Most people are unable to contribute enough at the beginning for the 'half your age' rule. So start with whatever you can, but each time you get a pay rise, put a quarter of the extra monthly cash into your pension."

You could always try out the Money Saving Expert's online pension calculator too to get a 'rough idea of what you'll be saving in a pension'.

Happy retirement planning!

Featured Image Credit: ITV/Getty Stock Image

Topics: Martin Lewis, Money, UK News, TV and Film