‌She said: ‘’Pensions are an important part of all of our futures, so it’s important that we are aware of the common mistakes that could lose us money. “With the average pension contribution being around £2,100 a year in the UK, this means you’d be £115.50 better off annually in a higher-performing pension fund. However, when you wait for retirement, you get benefits like 25 per cent of your pension pot being tax-free, with the rest depending on what rate it falls in. "For example, if you decided to withdraw £30,000 from your pension pot early, you’d end up paying £16,500 in tax. Medlicott advised: “In the UK, the average amount left in a pension pot when someone dies is between £50,000 and £150,000.