Why Save into a Pension?
Why Save into a Pension?
Pensions might seem complicated, but the basic idea is a simple one. It’s worth understanding the benefits of saving into a pension scheme, because your State Pension – while providing a foundation – may not be enough to live on. Call into one of our branches today to receive expert pension advice!
Did you know?
The maximum State Pension is a lot less than the amount most people say they hope to retire on – for 2020–21 it’s £175.20 a week, or £9,110.40 a year. Millions of people aren’t saving nearly enough to give them the standard of living they hope for when they retire. This is why it is vital to start early and plan for all those years of hard graft now!
If you aren’t saving enough, you have three choices.
You can:
- Retire Later!
- Start saving more now!
- Adjust downwards your expectations of what you’ll be able to afford in retirement.
Don’t rely on the State Pension to keep you going in retirement.
Even if you’re eligible for the full State Pension of £175.20 a week for the tax year 2020–21, this is far below what most people say they hope to retire on.
The Advantages of Saving into a Pension?
Once you’ve decided to start saving for retirement, you need to choose how you’re going to do it. The best place is to start with one of our Independent Financial Advisors! We can offer a free initial consultation so we can discuss what you want from your pension, and we discuss how we can meet your aims
Pensions have a number of important advantages that will make your savings grow more rapidly than might otherwise be the case. A pension is basically a long–term savings plan with tax relief. Getting tax relief on pensions means some of your money that would have gone to the government as tax goes into your pension instead.
If you save through a scheme known as a defined contribution’ pension scheme your regular contributions are invested so that they grow throughout your career and then provide you with an income in retirement.
For more information, please contact us on 028 9332 2822, or email simon@financialforesight.co.uk and we can arrange your appointment today!
Source: https://www.moneyadviceservice.org.uk/en/articles/why-save-into-a-pension