Many people don’t take the opportunity to arrange a pension plan. It’s much easier to forget about it for now, buy the big TV and go on holiday. Why not? Well you might live to regret its, that’s why !
It is highly recommended that you arrange a pension plan when you’re young so you can have a comfortable nest egg for later life.
Pensions are basically a way of building up a lump sum, in a predominantly tax free fund, to sustain your income after you have stopped working. There are many types of pensions to choose from, but with a bit of research and guidance from an Independent Financial Adviser (IFA), you can find the right pension plan to suit you.
You may ask yourself –“do I really need a pension ?”
Even though there is the State Pensions to rely on, this averages at under £100 per week to live on.
If you have a separate pension plan, then this can boost your income to make sure that your lifestyle and needs are sustained in later life. If you do already have a pension, make sure that it’s regularly reviewed by an IFA to make sure that you are still in the best plan for you.
If you take out a pension then you have to decide how much you are going to pay into it. Try and think about what you would like to do when you retire… perhaps you want to travel around the world or buy a villa in Spain. This all costs money and would need to be funded by your pension and other savings unless you win the lottery or are left a hefty inheritance.
The least you will need to budget for are day-to-day living items, perhaps rent and heating bills. It is also recommended that you add a little bit extra as a cushion in case there is any unforeseen event.
Remember also that income from pension plans are taxable so you will need to allow for this when making your calculations. Taking all of this information into consideration you should arrive at an income figure you are aiming to have saved for your retirement but in today’s terms. This figure will therefore rise between now and retirement due to the increases in living expenses, or RPI.
It is never too late to start saving into pension plan.
Start young - it will cost you less.
Get a pension when you’re young and not only will you have time on your side for paying in more contributions, it means your funds will have longer to accumulate in value and you won’t face the prospect of having to pay in extremely large amounts of cash as you get close to retirement. Even leaving it a further 10 years from your current age could mean that your fund could be only half the value it could have been if you had started 10 years before.
Once you have done all the research, perhaps you’re not are not sure which pension is right for you speak to an Independent Financial Adviser (IFA) and start saving immediately to reap the rewards when you retire.

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