To help avoid this, Antonia Medlicott, Managing Director of financial education specialists Investing Insiders, has revealed three common pension mistakes you should be aware of. Being in a poorly performing pension fundShe says: "Most pension providers will have multiple pension funds for you to invest your money in. 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. It’s seen as an ‘unauthorised payment’ which HMRC charges 55 per cent tax on, although many pension providers won’t let you withdraw your pension early except for ill-health or Protected Retirement Age. For example, if you decided to withdraw £30,000 from your pension pot early, you’d end up paying £16,500 in tax.