Pensions - Getting Started
The UK Auto-enrolment
The UK Auto-enrolment or Workplace Pensions initiative, launched in 2012, now means that everyone in full time work over the age of 22 and earning more that £10,000 p.a. are automatically enrolled into their employers Workplace Pension scheme, unless they positively opt-out.
So, unless you opt-out, if you meet the above criteria, you will have made a start at pension savings.
There are a number of very good reasons why you should join your employer scheme:
- Your employer will contribute to the scheme, as long as you do, so there is some ‘free money’ available!
- Auto-enrolment schemes have to meet certain criteria so they are mostly low-cost schemes with good default investment approaches and are low maintenance for you i.e. you don’t have to make many decisions.
- You get tax relief (a contribution to your pot from the tax man) added to your savings – which has got to be good!
- Saving regularly out of your income is one of the most efficient ways to save and usually, after the first few months, it’s not missed from your take home pay.
- The earlier you start saving for retirement, the better – look up the principle of compound interest, which needs lots of years to be really powerful, but has been described as the ‘8th wonder of the world’ allegedly by Albert Einstein.
Are you self-employed?
However, if you are self-employed, or run your own business, you will not have access to a Workplace Pension scheme. That’s where we can help – the principles of saving for your financial freedom in the future, still apply to you, but just need a bit of planning and by using a pension scheme, along with the Pensions Freedom rules, there are plenty of advantages to having a pension plan now.
But don’t take our word for it, contact us and come along, have a coffee and chat to understand more how we can help you plan for an active, comfortable retirement, at a point in your life when you want, not determined by somebody else