This is a wise rule to live by in many areas of life but it’s particularly important where pensions are concerned.

A pension is a pot of savings specifically designed to support you in later life (aka, in retirement). Most people have workplace pensions (set up by their employers), but you can also set up a private pension by yourself.

Typically, both you and your employer pay money into your pension while you’re working. Your pension provider then invests that money into a range of stocks, shares and other assets that they expect to increase in value over time.

“It’s a good idea to start saving into a pension as soon as you can, even if you can only pay a small amount in to begin with,” advises Becky O’Connor, director of public affairs at PensionBee.

“When you start saving can make a big difference to how much your pot is worth at retirement and ideally, by the time you retire, your pension should be large enough to live off for several decades.”

In short, the sooner you start saving into a pension, the longer it’ll have to grow due to the power of compound returns.

If you’re enrolled in a workplace pension scheme, you can essentially receive ‘free money’ from your employer, thanks to ‘Auto-Enrolment’.

If you’re eligible, employees pay at least 5% of their annual qualifying earnings into their workplace pension each month and employers must contribute at least 3% to the same pension. Some employers may even match the percentage you pay into your pension, so it’s worth checking if yours offers this.

“Making pension saving part of your long-term financial planning is particularly important given increasing life expectancies in the UK,” adds O’Connor.

“You might start accessing your pension from around 55, but you could live until you’re 90+. Most people are eligible for some level of support from the State Pension in retirement, but this alone is not usually enough to live off.”

Property vs pensions: here are 5 things you need to know about saving for your future