Should I get a pension?
Yes. The later years of life often bring different challenges that can be costly. Having a stream of income during these times is very important to avoid financial difficulty. Most of us want to enjoy retirement as a peaceful time. Pensions provide the finances to help make this possible. The age you retire and type of pension you chose is up to you. Planning for the future, however, is a must.
What pension schemes exist?
State pensions can be depended upon not to run out regardless of the number of years you spend in retirement.
Work-place pensions often incorporate employer contributions to grow the pot more rapidly as you contribute.
The flexibility of private pensions versus state pensions is indeed an attractive feature, as a portion of the pot can be taken out tax-free in a lump sum. Leveraging these different schemes together brings durability and flexibility.
Starting in October 2012, the government introduced ‘auto enrolment’. Over a period of time the vast majority of workers will be automatically enrolled in a workplace pension scheme, unless they have opted out. To opt out is generally not recommended, as such schemes provide a source of security for the future.