Pensions allow you to build up a lump sum, in a predominantly tax free fund, that give you an income and, possibly, a tax free lump sum when you retire. Most pension schemes...Pensions allow you to build up a lump sum, in a predominantly tax free fund, that give you an income and, possibly, a tax free lump sum when you retire. Most pension schemes tend to work the same way. While you are working, you pay an amount from your wages into your pension fund. In the case of the Basic State Pension, you pay National Insurance contributions to the government directly from your salary. When you have stopped working, or reached State Pension age, you’ll receive regular payments based on the amount you have contributed overall.
Very few people spend enough time thinking about long-term savings for their retirement but absolutely everyone will need money to live on when they retire. You could spend a third of your life in retirement as people are living a lot longer these days – that’s a long time to have to pay normal household bills. And let’s not forget your retirement should be a leisurely time spent doing the things you’ve always dreamed of doing. This takes money. Probably more money than you might think. So think about your pension provision today. Don’t leave it any longer.

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