Retirement warning as pension mistake ‘could be costing you thousands’ – how to avoid | Personal Finance | Finance

However, Fernanda clarified the commentary she is sharing should not be taken as universal “financial advice” as every person’s situation is different.

The video included the caption: “This is not financial advice, just some food for thought as this is a very nuanced topic.”

In the TikTok, the content creator explained: “Here’s what nobody is telling you about your pension and it could be costing you thousands.

“What a lot of people don’t understand about their pension is that the pension is not an account. A ‘pension’ is a tax wrapper.

“[It] means that every time you put money in there, you are getting tax relief from the Government.

“This translates to actual money from the Government being deposited into this account.”

Halfway through the clip, Fernanda highlighted that this is applicable for basic rate taxpayers with higher and additional rate payers having to claim some tax relief via a Self-Assessment form.

She added: “Whenever you dismiss your pension as somewhere you need to be investing through or you opt out of your workplace pension, you’re leaving money on the table.”

In the comment section of the video, viewers enquired about what they should be doing to avoid losing this cash.

One commenter named Lewis asked: “So, basically I should up my pension? I can add extra if I want to?”

In response to this question, the young content creator said: “Yes, you can.”

Those interested in further financial commentary can follow Fernanda’s TikTok channel (@frnndgdlh) for more content.