Pensions

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16. Conclusion

• You might think you're too young to have a pension, but if you are in your mid-twenties you should be making plans.
• The earlier you start and the more regularly you contribute, the higher the income and capital will be when you retire. You want time on your side, not working against you.
• Income contributed to a pension is not taxed, which makes it an extremely efficient savings mechanism.
• In general, contracting out of the State Second Pension (S2P) is a good idea if you are young and have time to build your own pension plan.
• Employers pensions schemes can be a valuable part of your overall remuneration package, because the employer contributes up to two thirds towards it.
• If you can't or don't want to invest in a company pension scheme, you can set up a personal pension. The benefit you get from your personal pension depends on how much you contribute, how well the investments in it do, and the annuity rate you get at the end of it.

You have now completed the course. To test your knowledge, take the Assessment test.

1. Don't rely on the state scheme! 2. Private pensions: your most tax efficient investment 3. Company pension schemes 4. How to top up your company pension 5. Factors when topping up a company pension 6. What if you change jobs? 7. SSASs for small companies 8. Personal pensions 9. Value for money personal pensions 10. Aim for a balanced pension portfolio 11. How much can you invest in a personal plan? 12. Choosing a fund 13. Personal pensions with greater investment scope 14. Use your plan to get out of S2P 15. Do you need an adviser? 16. Conclusion

• Pension Power