Why do I need a workplace pension?
We’re all living longer, and those extra years won’t pay for themselves. To enjoy a comfortable retirement you’ll need to save as much as you can, as early as you can. No matter how little, saving something is better than nothing.
Saving for a comfortable retirement
Did you know – research from the Money Advice Service shows that the maximum basic State Pension is far below what most people hope to retire on. State Pension is currently around £159.55 a week – could you manage on that alone?
Here are some benefits of a workplace pension:
- Your workplace pension gives you your own pension that belongs to you – even if you leave your job in the future, it’s yours to keep.
- Each pay period when you pay into it, your employer does too and the government lets you hold on to some of your tax to help you build a bigger pot. That’s free ‘extra’ money, meaning more saved towards a more comfortable retirement. Here’s an example if you were paying in contributions of £8 per month:
- Your workplace pension pot is completely separate from the State Pension, and a good way to top up your retirement income.
- The return on your pension savings is likely to be better than from any savings in your bank account. So it’s wise to start saving now to give your money a better chance to grow!
Remember… the money you put in to your pension pot is topped up by your employer and the government – it includes extra ‘free’ money and is a great way to add to your retirement savings!
If you stop your contributions or reduce them below the statutory minimum, your employer may also reduce their contributions or stop paying in too. So don’t lose out.
Do I have a workplace pension?
By law, automatic enrolment requires your employer to enrol eligible employees into a workplace pension scheme, like The People’s Pension, to help save for a more comfortable retirement.
Watch our 3 minute video about the benefits of a workplace pension, and what automatic enrolment into The People’s Pension could mean for you.
Please note that we cannot give financial advice. You can get help and guidance from organisations like Pension Wise and the Money Advice Service. Alternatively, speak to your financial adviser or if you don’t have one head over to www.unbiased.co.uk to find your nearest one (you may be charged for their advice).