Occupational & Personal Pensions
Although there have been some scandals in recent years it is largely agreed that pensions are the best way to save for your retirement.
We know that people are living longer and healthier lives and the earlier you start putting money into a pension, the more benefit you will get from it when you retire. It has never been so essential to plan for the future and if you are relying on the state pension to take care of you in the future, you may get a nasty surprise come retirement day.
Occupational Pension
If you have the opportunity to join an occupational pension scheme then it is generally considered sensible to do so as they usually provide many benefits.
An occupational pension is salary-linked and the amount you receive will be determined by your length of service with the company and your final salary when you retire. Benefits of joining such a scheme may include certain levels of tax relief and even financial provisions for your family in the event of your death.
Personal Pension
If you don’t have the opportunity to join an occupational pension, it is wise to start a personal pension. These can be obtained from a variety of financial services companies. In general you pay into the personal pension on a monthly basis, and on retirement the accrued fund is used to purchase an annuity, which is a pension income that lasts for the rest of your life.
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