About Pensions

Knowing what your financial situation will be when you decide to no longer work at a fulltime job can feel a little like fortune telling. But who wants to rely on a crystal ball to know what life will be like when that regular pay cheque doesn’t come in anymore?

This is certainly not a situation that you want to find yourself in when you retire. But what options are there for you? Well pensions plans are the most obvious option to guarantee a certain amount of monthly income to help support you and your family in your older years.

Most of us put off planning for those days for as long as we can, but really the sooner you start planning your pension, the more money that you will have when you retire – so it does pay to start as soon as you can.

If you have a full time job you are most likely building up funds toward a basic State Pension and perhaps an additional State Pension, but relying on these sources of income might not be enough money to allow you to live the lifestyle you are accustomed to.

Basically all pension plans are long term investments that come with special tax rules. You can invest into pension plans when you are receiving more income, usually when you are younger. Then as your income capacity diminishes, usually after the age of 55, you can start tapping into your pension plan to receive additional income.

There are three main types of pensions:

• Occupational salary-related schemes – your employer pays into a plan that is tied to your occupation and your salary
• Occupational defined contribution schemes – also offered by some employers and can also be referred to as money purchase schemes
• Stakeholder and Personal pensions – these types of plans can be started by yourself or through your employer.

The easiest way to ensure that you have a sufficient plan is to contact an advisor. If your employer offers pension schemes, it is really a good idea to look into that option first. All employers with five or more employees have to offer some kind of pension scheme. But if you don’t have access to a employer plan, then starting your own is the next option. You can research your own options, but a financial advisor can help you do this.

So don’t leave your financial future up to a fortune teller. Take matter into your own hands and get the best advice that you deserve and know that your financial future will be taken care of. It’s worth it!