Millions of people throughout the United Kingdom are yet to pay into a pension or have made little contribution into a pension fund – and there are many employees across the country that have no pension scheme in place.
Pension schemes awareness however has increased in line with the economic downturn, but still there are too many people ignoring the need for a pension scheme leaving it until later in their working life before making a decision – this being particularly damaging to their financial health when retirement comes around. Starting a pension in your early 20s would be recommended, this building up a sustainable income for when you retire. Putting off paying into a pension for 10 years can mean a significant decrease in the amount you can potentially receive, depending on the pension scheme you enter.
A few points to remember if you are thinking of taking out a pension soon;
1. If you have no pension plans, the best place to begin is with the State Pension and to find out how much you are likely to receive.
2. Once you have found out more information on your State Pension, you can then consider taking out further pension plans. (You can take out as many plans as you like).
3. Company Pension Schemes, employers may have these in place, and they could be used to top up your retirement funds.
4. Look again if you have ever delayed taking out a pension scheme due to financial restraints, many plans available now are charged on a Stakeholder basis.
Speaking to our financial adviser will advise you on the different pension options available to suit your requirements and situation. So for accurate pensions advice contact us today.