Martin Lewis has issued a ‘minimum’ warning to everyone with a pension.

The financial expert has recently turned his attention to private, workplace pensions advice and is helping everyone figure out the best way to maximise the pension pot they’re building up through work.

One aspect of pensions which often leaves people confused is - just how much should you be putting in your pension pot?

Workplace pensions work on an ‘opt out’ basis now - you’ll automatically be enrolled if you earn over the Personal Allowance threshold, unless you specifically opt out (but you shouldn’t do that).

Companies must match at least 3 percent of what you put in, up to 8 percent, and many companies offer variations on pension schemes which are more or less competitive but usually are at least slightly better than the legal minimum.

But should you be putting 5 percent, 8 percent, 10 percent of your salary each month into your pension? Or make extra contributions beyond what your employer matches?

Martin Lewis explained how the amount you should be saving into your pension pot ‘scares the pants off absolutely everybody’.

He said: “So let's do the thing that scares the pants off absolutely everybody when I say it, so you no one does this what I'm about to say you will not do so do not panic, but it is this old equation. It's not particularly accurate, but it gives you a good sense. Who's the younger of you two? Mihir? You're the younger, aren't you? So, I'll ask you. So, you take your age, when you start putting in your pension, how old are you?”

Pensions expert Mihir then told Martin he’s 30.

Martin continued: “You're 30, you halve it 15. So, the equation says that you want to put 15% of your income, and that includes employer contribution into your pension for the rest of your life to have a pretty strong retirement fund.

“Very, very few people manage that. But the real lesson from that is the earlier you start, the better, because the more time your money has to grow, when it's in your pension, so people do that equation, they go, 'Oh my God, I'm never gonna do anything'. It's not about that. It's just a way of indicating to you that early is better, and the more you can catch up later. So we'll go back now to Laura's question – 45, and no pension – we'll assume that she can contribute, where and we're going to say, first place, if you're in work, use your workplace pension.”