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Arena Magazine 2007 Issue 3 Autumn Arena |
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Pension advice
Your question answered.
I'm nearly 30 and up until now I've never made any pension arrangements. How long can I put off joining a pension scheme? After all there is always the state pension scheme to fall back on.
As a rule of thumb the longer you put off saving for your retirement the more you will have to pay later in life. Most people recognise that the state pension scheme will not give them the standard of living they want when they retire. Yes it's a safety net, but for many people having to rely on the state scheme will see them much worse off in retirement than people who have an additional pension scheme to draw on.
If you have an occupational pension scheme you should seriously consider joining it. Schemes where the employer contributes and the employee contributes are more likely to pay a higher pension come retirement, they also often incorporate a death-in-service benefit which will provide your partner with a lump sum and pension payment should you die before retirement.
Pensions are a complex issue and Usdaw is leading the field in helping to explain the ins and outs of the subject. Although the union cannot give financial advice to anyone, only independent financial advisors can do this, the Usdaw website contains useful information to help you find out more. You could also sign up to the pensions home study course, more than 1,000 members already have.
www.usdaw.org.uk/pensions
While this advice is accurate it is not a definitive guide to the law.
If you have any concerns you should contact your local rep/official or ring the helpline 0845 6060640.
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