MoneyMartin LewisA pension saver asked him to clarify how his general rule worksNicholas Dawson10:22, 07 Aug 2026Updated 10:24, 07 Aug 2026Martin Lewis has explained some key principles and numbers to think about when it comes to your pensions. He shared some thoughts on pension contributions and how to build up a "decent income" for your retirement.‌A person wrote into his BBC podcast with a question about how much they should be paying into their pension. He wanted Mr Lewis to clarify his general rule that your contribution percentage should be half your age. In response, Mr Lewis confirmed this is his "general rule of thumb". He said: "You take your age, so if you start your pension at 30, halve it - 15 per cent of your total income - of your salary should be going into a pension to give you a decent income at retirement."‌But the consumer advocate said there is some leeway here. He said: "It is not a hard and fast rule. Many people do not do it, but it is a nice, intuitive rule that helps, and also makes the point very strongly.‌State Pensioners to face major tax change'The earlier, the better'"Start at 20, it's 10 per cent. Start at 30, it's 15 per cent. Start at 40, it's 20 per cent. The earlier you start, the better."The questioner asked for some more specifics about how this half your age rule works. He explained that he is 23 and had just started his first job after university.‌In his case, he was paying in 9 per cent of his salary while their employer was contributing 6 per cent, so adding up to a 15 per cent total. But they wanted to know if the half your age rule refers to the total contribution, including the employer amount, or just how much the employee is paying in.In reply, Mr Lewis said: "The general rule of thumb is about the total going in, so it includes your employer contribution. So you are over the rule of thumb."‌The financial expert also commended the young man for starting to pay into his pension at such a young age. He explained the big difference it can make by paying in sooner rather than later.'Really important'Mr Lewis said: "It's really important because the earlier you start putting money in the pension. The reason it's beneficial is you'll have it in an investment, but effectively that investment can compound over so many years."He shared some rough figures that for every £1 you put in your early 20s, you would have to put in £30 in your 50s to get the same investment growthArticle continues belowMr Lewis said: "So it's so worthwhile doing it early when you've got disposable income." He said young people who are still living at home and who have lower living costs may want to prioritise paying into their pension.Choose Daily Mirror as a 'Preferred Source' on Google News for quick access to the news you value.‌Martin LewisPensionsDepartment for Work and Pensions