Pensions

 

Let your cash do the hard work

Saving for retirement is something that most of us put off for as long as we can. But the reality is that the sooner you start paying into a pension the higher your income in retirement is likely to be. If you're working you're usually building up the right to a basic State Pension but this may not be enough to give you the standard of living you want.


Automatic enrolment into a workplace pension

Between October 2012 and February 2018, your employer must enrol you into their workplace pension if you are an eligible employee. This is called automatic enrolment.


What is a pension?

A pension is a long-term investment with special tax rules – for example, you get tax relief on contributions. You can't access the money in your pension until you reach age 55. Some pension schemes have additional rules about when you can take your benefits; you no longer have to stop working to draw a pension as long as your scheme's rules let you.


Types of pensions

There are three main types of pension:

  • State pension payable when you reach State Pension age.
  • Personal pensions including stakeholder pensions and self-invested pension schemes.
  • Occupational pension or workplace schemes. These include final salary, money purchase schemes and group pension schemes


What are the benefits of joining a workplace scheme?

Although you don’t have to join any pension scheme offered through your employer, it’s usually a good idea to join an occupational or work place scheme into which your employer makes contributions if it’s available. In addition to contributing your employer may also provide additional benefits such as life insurance and provision to retire early due to ill health.

Don't delay starting or joining a pension scheme - you could end up with a much smaller pension pot at retirement. Find out whether your employer offers a pension scheme, what type it is and when you can join it. Talk to us for more information on retirement and the different pension options available to you.