Paying into my Pension
If you’re reading this section chances are you’re probably already thinking about starting a pension or reviewing the one you’ve already got.
As you go through life, whether you're in or out of work, your ability to contribute to a pension will make a big difference to the quality of your life in older age.
Q. What is a pension?
In simple terms, a pension scheme is just a type of savings plan to help you save money for later life. It also has favourable tax treatment compared to other forms of savings.
Q. So effectively my Pension is a Long Term Savings Plan?
Yes, it makes sense whilst you are working and can afford it, to put away some money for when you’re older and that’s what pension schemes help you do. You can save some of your income regularly during your working life so you can have an income in retirement, or even if you just decided to work less and partially retire.
There are several types of pension schemes that are available and many different ways to invest the money once it is within the pension scheme. Some may be run by your employer, others you can set up by yourself. You may end up having a number of different schemes during the course of you working life and saving into one scheme doesn’t mean you can’t save into another or use other tax-efficient savings plans like ISAs.
Taking expert advice on pension planning is crucial at an early stage and will assist you in making sure you have the right plan to suit your needs, both now and when you retire. When the time comes for you to start enjoying your pension, there will be several options available to you. These may include the ability to take a tax-free cash sum and the added security of being able to receive a regular income.
Pensions can change people’s lives. Most of us would like to be able to choose to stop work one day and choose how we live when we do. A well planned out pension strategy is a good way to achieve that. Our vision is one where people are empowered to make the most of their pensions.