• Starting a New Pension

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    Unless you are lucky enough to be offered membership of a good company pension scheme, you need to set up your own plan to supplement what you will get from the state when you retire. Remember, you may not qualify for the state pension until long after 65, so if you want to retire when you want to, on more than minimum state benefits, you need to start a pension plan as soon as you can

    How much should I save?

    A well used “rule of thumb” has generally been to divide your age by half and then use that as a percentage of your earnings. So a 20 year old ought to be saving 10%, a 30 year old 15% and so forth. We all know that your salary has to stretch to many needs and making a start at what you can afford is better than no start at all.

    When should I start?

    As soon as possible. It is never too early to start even though retirement may seem a long way away. Getting a head start can make a big difference to your life when you finish working.

    Why do I need a pension?

    People are living longer than ever before, and many people are now spending almost as much time in retirement than they spent working. Given the ever increasing demands on the public finances, waiting to see how much the state has left for you may be a high risk strategy.

    Pension plans today are very different to the cumbersome, expensive, plans of the past. Low cost, highly flexible plans are now very much the standard, with government imposed limits on charges for some plans. Making sure you maintain a reasonable standard of living in retirement should never be seen as a waste of time.

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