Could you live on just £90.70 a week (or £145.05 if you’re married)?
Most men and women working full time earn considerably more than the current State Pension shown above. Without a company pension, they can expect a sharp drop in income when they retire.
Find out more about:
* State
Pension Forecast ¦
A
Company Pension can help ¦
Should
I join my employers scheme? ¦
What
advice can I get? ¦
Are
payments expensive? ¦
How
much should I pay in? ¦
What
if I haven't got enough spare cash? ¦
What
if I wait before joining?
State Pension Forecast
To find
out how much you'll get from the State when you retire, ask for
a State Pensions Forecast at The Pensions Service
or phone them on 0845 300 0168.
A company pension can help
Before making any decisions, please read your joining pack which has full information about your employer’s scheme.
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Should I join my employer’s scheme?
Joining the scheme is up to you – but here are some things you should think about:
- * how much other savings and investments will you have to live on when you retire?
- * It’s possible that your employer will contribute to your pension – which could mean your retirement income will be more than if you were just contributing yourself.
- * saving for a pension is tax-efficient. (Although please remember that tax treatment depends on your personal circumstances and may be subject to change in the future.)
Today, there are over 10 million elderly people living in the UK. Source: Unison, August 2006. Sadly many of them didn’t plan ahead for their retirements and at least 2 million (1 in 5) live below the official poverty level. Source: DWP: Households Below Average Income Statistics 2005/06.
If you want to join, simply complete the joining form (or employee authorisation form) provided by your employer and return it to them.
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What advice can I get?
You can speak to the adviser for your employer’s scheme or to your own financial adviser. If you don’t have one, here’s a website that can help you find a fully qualified adviser
. If you’re unsure how to complete your joining forms, please speak to your adviser, employer or contact us.
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Are payments expensive?
For every £1,000 you earn, this is how your pension could benefit:
| Your employer pays in 5% | = | £50 |
| You pay in 5% before tax relief | = | £40 |
| HM Revenue and Customs pays in 20% tax relief | = | £10 |
| Total payments into your pension | = | £100 |
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How much should I pay in?
- * How much pension you'll need in retirement
- * How long you'll be saving for
- * How much other people, including your employer, are paying in on your behalf
- * How much you can afford.
If you need to vary your payments, or stop them for a time you can. Again, your joining pack explains your options.
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What if I haven't got enough spare cash?
Try out our indulge-O-meter and see how much you're currently spending on little treats. You may be in for a shock. Little cut backs can soon add up to big savings.
Can you think of ways to find spare cash for your pension?
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What if I wait before joining?
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