What is a pension?
A pension is a special type of savings plan, with important tax breaks, in which you can build up money in order to provide yourself with a monthly or annual income when you retire. It is a long-term arrangement, so you can’t dip into it before you retire.
Why have a pension?
It’s good news that we’re all living longer, but it does mean that we may have to pay for long retirements. The basic state pension is a start, and it may be supplemented by other benefits you may be entitled to, but it’s not likely to be enough to give you the standard of living you want. This is why you should seriously consider having your own pension.
Is my pension sufficient? I haven’t reviewed my Pension in years!
It’s great that you are one step ahead of the game, but is your monthly contribution sufficient to provide you with a comfortable retirement. When did you last review your pension ensuring your hard earned money is invested in appropriate funds?
It is important that you annually review your pension ensuring your funds are maximized for best returns and at the same time protected from the ups and downs of the financial markets.