Martin Lewis warns people when it 'isn't worth' paying into pension

Martin Lewis has warned people when it is "not worth" putting money into a pension. The BBC Sounds podcast host has spoken out in a pensions warning to those with pots and savings nationwide, as the Cost of Living crisis continues.

The ITV star suggested that "it's just not worth putting money into a pension" if it could potentially cause them to miss out on crucial benefits that could enhance their retirement, such as pension credit which acts as a top-up for pension income.

Mr Lewis was joined by Charlotte Jackson, head of guidance at the Money and Pensions Service, who said: "There are means-tested benefits, (depending on) the way you go into that space particularly if you're looking at going into a care home.

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"Each of them are a balancing act in terms of what you need to pay, what you're accessing at the moment and the point at which it comes into scope of assessment for means-tested benefits." Martin explained: "Someone who's 45 wanting to save £100 a month, it's going to be a benefit to them," but for someone aged 65 saving £10 a month "is going to be questionable".

Charlotte said: "Pensions are a way of passing on wealth to your dependants. What we're seeing more of now is people saving, even in later years, and not accessing that pot because it comes with tax relief and you can pass it on.

"If you don't access that pension pot at any age and you were then to die, that pension pot gets passed to your spouse or children. It can be passed down without inheritance tax." Mr Lewis was speaking out on his podcast spin-off.

The consumer champion, who shot to fame as the Money Saving Expert, has two podcasts on the BBC Sounds website and on Spotify.