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:
- The 'state retirement pension' (which everybody gets)
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.
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.
This page was updated on 15 July, 2008