Living for today
You might be living for today but that doesn't mean you should not be thinking about the future. Everyone needs to plan ahead for retirement. As people live longer due to healthier lifestyles, it is even more important to think about how and when to save for retirement.
State pensions
A basic State Pension is administered by the government and is calculated based on the number of qualifying years you have been working and paying National Insurance Contributions (NICs). If you are 16 or over and working you should be paying NICs regardless of whether you are an employee or you are self-employed. The age at which a young person can claim a state pension is likely to be 68 or more, due to people living longer. Visit the Directgov website to calculate when you will reach state pension age.
Second pensions
If you are employed, you can most likely be part of a company pension scheme. In most cases, your employer will make contributions to the scheme on your behalf and require that you make regular payments from your salary. If your company does not offer a pension scheme there is no reason why you can’t have a personal Pension available from banks and building societies who invest your savings on your behalf.
Talk
It's worth talking to older members of your family who are either retired or coming up to retirement. They can give you a lot of advice and will be able help you make the right decision based on your circumstances.
Useful websites
Directgov
Directgov is the website of the UK government for its citizens, providing information and online services for the public all in one place. Has a useful section on money, tax and benefits. Includes information on state pensions; company and personal pensions; pension credits; and retirement planning.
Department for Work and Pensions
Provides its customers with pensions, benefits and retirement information.
Online tools
State Pension Age Calculator
Use the State Pension age calculator to work out the date when you can expect to retire.
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