Pension: things you need to know

Thinking about joining a pension scheme? Then, know important things about pensions.

09:02 27 July 2013

Pension is a simple financial product, a pot of cash that you, your employer, or the government pays into to save money for your retirement and to enjoy tax benefits.

 

• The best thing about paying into pension, aside from building your retirement fund, is enjoying tax relief on your contributions. You get the tax back that you paid on your contributions if you’re under 75 years old and this will be added directly to your pension pot.

 

• The amount of money that you can put in your pension will determine how much money you’ll get once you retire. Of course, you would want to get as much money as possible so you can afford to have comfortable golden years. To make this happen, contribute as much as you can as soon as possible. 

 

• Getting a pension is easier these days. Many people will end up in a company pension. In order for your employer to contribute to your pension, you need to agree to be part of the scheme being offered. However, if you choose to start your own pension, you need to shop around for the best deals available to you.