Planning for the retirement you want.

We realise pensions can seem confusing and you may not know where to begin. 

Forward planning on any journey is always wise.  Here are some of the key considerations to help you map out your route to retirement.

In its simplest form, a pension is a tax efficient way of saving for your retirement. When the day arrives for you to stop working, you won’t want the worry of financial problems.  A pension can be a big step towards a more comfortable future by giving you a regular income.

Why start saving for your retirement?

1. The basic state pension.  As the name suggests, it’s a basic pension and is unlikely to provide enough income to fulfil your needs in retirement.  As a result, it’s best to have some other form of income to rely on.
2. Planning ahead.  With developments in modern healthcare, people are living longer.  You could have many years ahead of you, but to fully enjoy them you’ll need an income to support your lifestyle.
3. The sooner the better.  It’s easy to put off thinking about retirement, but the sooner you start adding to your pension the more time your fund has the potential to grow.
4. Rising costs.  The value of your money today can change over the years due to inflation.  As a result, money today could be worth less in the future.  To try and counter the effects of inflation, it’s useful to increase your contributions each year to help strengthen the value of your pension.
   

Use our retirement planner to help you plan ahead.

Highlights of a pension

A company pension is one of the most effective ways for you to save for retirement and we try and make it as simple as possible for you to join up.  Once you start to pay in, your employer will often contribute as well.

• The Government provides generous tax benefits when it comes to pensions.  This helps to make saving for retirement more affordable.
• All the money that builds up in your pension fund is virtually tax free.
• At the moment, for every 80p you add into your pension fund, the taxman will contribute 20p.  This assumes a basic rate tax relief of 20% although this figure may change in the future.  If you’re a higher rate tax payer, you can claim any extra tax relief from the taxman. The law and tax rates may change in the future. The value of tax relief will depend on your individual circumstances.
• Thinking of leaving your current job?  All the contributions that have been built up in your fund can go with you.
• When you come to take your benefits you have the option of taking a tax free cash lump sum and securing an income for life.
• Any money you invest is tied up until you take your pension benefits.

Download our Workplace Savings guide for more information on mapping out your route to retirement.

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