Business Advice

Planning for Retirement with A Workplace Pension

No one wants to think about being old and grey do they? Retirement for many of us seems like a pipe dream in the current economic climate, but it is always better to be as fully prepared as possible for our future, as you never know what is round the corner. For some of us, by planning carefully now, we can put together a nest egg that looks after us and our family during retirement and beyond, especially if we have children and other dependents that rely on our income to survive. Saving money for retirement and making the most of workplace pension schemes and the like is an important strategy to put some thought into sooner rather than later. The older you start to save, the less money you’ll have at your disposal when you really need it the most.

Since 2012 government legislation has meant that it is mandatory for employers to offer a workplace pension to all full-time employees. If you are in employment it is important to consider the option being put forward by your employer, but to also explore additional avenues that can be used to prepare for the future. You never know when you might require financial assistance at an early age due to an accident or illness.

By adding money into a workplace pension you have that added level of financial security to fall back on after you have finished work and have retired. Whatever you pay in to your workplace pension scheme, your employer must also pay the same amount. You are entitled to opt out of a workplace pension, that is your choice, but you will always be offered a workplace pension as standard. The type of workplace pension that you are signed up for will either be an automatic enrolment where money is taken out of your wages each month and your employer will match the contribution. A final salary scheme is a defined pension scheme that is linked to your salary level, so the payment in to your pension pot will increase as your wage does. The amount you are given at retirement age is based on your salary at the time of retirement, as well as the number of years you have been involved with the scheme.

The state pension is based on the money that you have paid throughout your working life in the form of Tax and National Insurance, which is taken out of your wages every time you are paid (or as part of an annual self assessment if you are self-employed or own a company).

Of course, in the short-term there will be times when you need assistance financially, especially at a young age when you are just starting out in your career. If you need help paying for an emergency repair of appliances in the home, to fix your car that is needed every day for work and family tasks, or for an unforeseen bill that has left you without cash for the rest of the month, there is assistance out there for you. Even if you are saving for the long-term and putting money aside into a retirement fund, a responsible payday loan lender can step in to help in the immediate short-term. With an application for a short-term loan you can gain help with your current predicament, and will only be accepted if you can prove you have the means to pay back the loan come next payday. This way, you can gain the financial assistance you need right now, without it impacting your ability to save for the future and put money aside into a retirement fund.

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