Do I Need A Pension?

As we are all living longer and would like to enjoy our dotage in the most comfortable way possible, we must consider pensions as early as possible to a create a nest egg for our retirement.

A pension is designed to help you fund your retirement along with your home and any savings and investments that you may have. The government wants you to save into a pension plan and will incentivise you by offering tax relief if you do.

Benefits of Saving for a Pension

A pension is simply another type of saving plan but they have a number of advantages to other saving plans because they are specifically designed for retirement. They are a tax-efficient way of saving and should form part of your retirement plan.

Employer Contributions

Most employers realise the value of pensions and will invite you to join their group pension. This can reduce costs associated with saving into a pension plan. Moreover, they may pay into your pension plan as well and it is something that you will want to consider joining.

Access to Tax Free Cash in Retirement

If you have saved into a pension plan, you will be entitled to take up a tax free lump sum. Therefore, the more you have saved, the more tax free cash you can withdraw from the fund.

Don’t underestimate the benefits of saving into a pension. The options are many and varied and you should seek financial advice to ascertain the best options for you.