Martin Lewis explains 'really important' tax rule when you pay into your pension

You could have more in your pension pot than you thinkNicholas Dawson03:30, 18 Jul 2026Martin Lewis has urged people to understand what he calls a 'superpower' around how pensions work. He shared several tips about pensions on his BBC podcast, to help people get to grips with how these retirement pots work.‌One point he had huge emphasis on is understanding how tax relief on your pension contributions works. He said this is a vital principle to know as it is "the big pension superpower". He explained: "It is a savings pot, but it's tax-efficient because when you put money into your pension, it comes from your pre-tax income. This is really important."‌He shared some figures to show how this works. Normally you pay income tax on your income, so if a basic rate taxpayer earning £100 would ha