Four things that you need to know about pensions
- The most common types of pensions are:
State pension – this is a regular pension that you receive from the government which you can claim when you reach state pension age.
Workplace pension – this is usually arranged by your employer. A percentage of your pay is put into your pension every payday and your employer will usually contribute.
Private/ personal pension and Self Invested personal Pension (SIPP) Approachable finance offer private and SIPP pensions these give you an alternative or additional pension income to your work-based pension. A good IFA and Wealth Manager will advise the portfolios that are best suited your needs and risk approach and will manage the investments for you.
2. Pay into your pension as soon as you can – the earlier that you start paying into your pension, the longer that the investment has time to grow.
3. Free money from the government – When you contribute into your pension, you will usually benefit from tax relief. Basic rate taxpayers usually get a 25% tax top-up.
4. Don’t lose track of your pension – To keep track of your pension you should:
- Keep note of all your pension details and keep this safe over time
- Make sure that you pension provider, and IFA, has your current address
- Consider opening a private pension with an IFA and transferring any previous pensions into one pot for easy management.
