Here, Selectapension’s National Accounts Director, Peter Bradshaw answers your burning questions…
Why is it important to save for your pension sooner rather than later?
There are significant benefits to be had from saving early on in your working life: you are likely to accrue more money over time than if you started at a later date and there are tax benefits as well – in effect free money all put into your pot. It also creates a regular saving habit.
As we don’t know what future governments will decide about the state pension age or payments, having your own pension to top up your income in retirement is a good idea.
How can I make pension planning less scary?
Since 2015 people have been given the freedom to do what they want with their pension pots. However, with more responsibility, comes uncertainty and many are confused about choosing the option that is right for them.
But pension planning does not have to be a daunting process. Planning tools are available on the market which can help map out exactly how much you need to save to reach your retirement goal. Pension Monster, www.pensionmonster.com, the new free online retirement tool, provides consumers the guidance they need to take an informed view of their retirement options ahead of seeking financial advice.
Where can I go for guidance and support for my pension?
We would always recommend individuals seek advice from a professional financial adviser before buying any retirement product. They will take the time to understand your particular circumstances and help you implement your plan appropriately.
Tools such as Pension Monster are an ideal way for anyone, regardless of the stage in their working life, to research their options and to start the planning process before seeking professional advice. It is important that consumers are made aware that these services are available and free, and can help people feel more in control over their future.