Martin lewis shares pension 'loophole' to 'double your money'

THE MONEY SAVING EXPERT CALLED THE IT A "SUPERPOWER" AS YOU GET TAX RELIEF 11:48, 02 Jun 2025 Martin Lewis has shared a pension 'loophole' that could 'double your

money' during a segment on his ITV programme. During his return to The Martin Lewis Money Show Live for its Summer Special, the 52-year-old turned his attention to the workplace

pensions system. Specifically, he spoke on how your pension contributions aren’t taxed at the point of contribution. READ MORE: NATIONWIDE CUSTOMERS TOLD JUNE DATES TO CHECK BANK ACCOUNTS

FOR £100 BONUS PAYMENTS Martin explained: “The most important thing to remember is the money you put into your pension is from pre-tax salary. So this is the superpower. You get tax relief.

"So as a basic 20% rate taxpayer, you’re putting £100 in, but of course when you get it in your pay packet 20% is being taken off. So to put £100 in only costs you £80. So you’re

getting £100 investment for the cost of £80.” Article continues below The finance guru said that for higher-rate taxpayers, the gain is even greater because you get a £100 investment for

just £60 because you don’t lose £40 to tax. For a 45% rate taxpayer, it costs you just £55 to get £100 invested into your pension tax-free. Additionally, for every £100 you put in, your

employer will add in matched contributions. He continued: “So for a basic rate taxpayer, that means you, if you’re putting in £80, you’re getting £160, double the money going into your

investment, double your money from what’s coming out your pay packet. “If you’re a higher rate taxpayer, £60 becomes £160, if you’re a top rate taxpayer - and some people might say it’s

unjust they’re the ones that get the biggest but anyway - £55 is nearly being trebled to £160 going into your investments. “That is just completely unbeatable. So in a way if you were not to

do it, you’re giving up a payrise.” Article continues below Join our dedicated BirminghamLive WhatsApp community for the latest updates sent straight to your phone as they happen. You can

also sign up to our Money Saving Newsletter which is sent out daily via email with all the updates you need to know on the cost of living, including DWP and HMRC changes, benefits, payments,

banks, bills and shopping discounts. Get the top stories in your inbox to browse through at a time that suits you.