Since early 2010 this website is no longer being supported. It remains online purely as an archived resource.

Pensions

I'm too young to think about pensions, aren't I?

No you're not! You may think that pensions are only for old people to worry about. But remember that they were contributing to their pensions since they started work, quite probably when they were younger than you are now.

Types of pension

There are two main types of pension:

  1. The 'state retirement pension' (which everybody gets)
  2. pensions that are for you only, which you pay for yourself or
    pay for along with your employer.

Many people at present have only a state pension. The trouble is that it only provides a small weekly income, which retired people find it difficult to manage on. Unfortunately the state pension in the future is likely to be even smaller, so it's well worth planning for your future now.

If your employer runs a pension scheme it is usually well worth joining it and contributing. This is normally the easiest and best value pension of your own.

If your employers don't run a pension scheme, they can tell you about a stakeholder pension, which you can pay into from your private income.

Many people say it's best to start a pension as soon as you can, and pay into it as much as you can reasonably afford.

More about pensions on The Pension Service website.

This page was updated on 15 July, 2008

 

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