WHAT IS A PENSION?

A pension is a pot of money that will help you to cover the cost of living when you retire. Your pension works on compound interest. This means the sooner you start, the faster your pensions savings can grow.

Most people will have two types of pension, the State Pension and a Workplace Pension.

WHY IS IT GOOD TO HAVE BOTH?

The State Pension gives you a good foundation for your retirement savings, but contributing to a Workplace Pension is a great way to make sure you can afford the lifestyle you want when you retire.

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THE STATE PENSION

The State Pension is a regular payment from the Government that you can claim when you reach the State Pension age (currently 65 for men and women).

THE WORKPLACE PENSION

Workplace Pension is a way of saving for your retirement that’s arranged by your employer.

It helps you save by automatically putting a percentage of your salary into the pension scheme each payday.

A big bonus with a workplace pension is that your employer will usually provide an extra contribution to your pension pot each month, on top of what you pay in.

Want more info? Get more detail on the different types of pension here.

TOP TIPS

  • Start early
  • Pay in as much as you can
  • If you are not in your work pension scheme, you can ask your employer to enrol you.

DID YOU KNOW?

When you pay into your Workplace Pension, your boss does too. That means you’re both effectively saving money for your future!

NOT WORKING YET?

Even if you haven’t started your Workplace Pension yet, we have a range of resources to help you in the future.

LEARN MORE ON GOV.UK