Pensions – Getting Started
Automatic Enrolment in the UK Workplace
The Auto-enrolment or Workplace Pensions initiative, launched in the UK in 2012, means that everyone in full-time work over the age of 22 and earning more that £10,000 p.a. are now 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 – which is a good thing!
There are a number of very good reasons why you should join your employer’s scheme:
- By making your contribution, this means your employer will also contribute to the scheme – so there is some ‘free money’ available!
- Auto-enrolment or Workplace Pension schemes are required by law, to meet certain criteria to be eligible to be classed as a suitable scheme. 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.
- Tax relief (a contribution to your pot from the tax man) is added to your savings – which has got to be another good thing!
- By saving regularly out of your income, you are using one of the most efficient ways to save. For most people, after the first few months, it’s not missed from your take home pay either.
- One key aspect of pensions, are that 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.
If you are self-employed…..
If you are self-employed, or run your own business, you will not generally have access to a Workplace Pension scheme. That’s where we can help – saving for your financial freedom in the future is still important (if not more so!), but just need a bit of planning. Starting early, means you can be freed from your business responsibilities, at a time of your choice.
But don’t take our word for it, contact us and come along. Simply 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