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You may work from your early 20's until your mid 60's, leaving 20 or so years with no income, unless you have saved. As a young person you are unlikely to have thought about your old age and even less about how you are going to afford it. Whilst it might not suit you to begin saving straight away it is well worthwhile to find out a little bit about pensions and how you will be affected now.
Everybody, no matter how young, needs to plan for their retirement. This doesn’t mean that you have to start putting money away every month from today! Having said that the earlier that you start to save the longer your fund has to build up. There are benefits to saving toward a pension as well as you will find out later. Remember as you read this that pensions are taxable, just like any other earnings, so you need to deduct tax from your budgeted figures.
There are two parts to your pension to consider.
We can consider each section in turn.
Basic State Pension.
Additional State Pension
Although these amounts may look like a lot of money to you now, you should plan to supplement the state pension with a personal or company pension.
Personal Pension Plan
Company Pension Plan