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Don’t stress – you still have time to sort out your pension!

A pension can be viewed as a long-term savings plan to help you save money that is accessible for you when you retire.

It is never too late to start saving for your pension as it will help to make your savings grow with regular contributions that you make and then are able to access from the age of 55 onwards.

You will receive a State Pension which is a regular payment made by the government, however the maximum basic State Pension you will receive is £159.55 per week (as of April 2017) and this is far less than what most people say they can live on.

Automatic Enrolment
Employers are gradually being required to automatically enrol their employees into a work place pension. Your employer will contribute towards this which will help towards saving more money for your retirement. This is referred to as ‘automatic enrolment’ scheme which is compulsory for all employers to provide.

Pension types
Defined contribution pension It can also sometimes be referred as ‘money purchase’ pension. They can be personal pensions organised by you or your employer. The amount you receive depends on how much money is contributed and how well the investments have grown. The value of your pension can go up or down dependent on the investments made. See below the various types of defined contribution pensions:
• Executive pension plan
• Group personal pension
• Master trust pension (eg NEST, NOW pension, the People’s Pension)
• SIPP (Self Invested Personal Pension)
• SSAS (Small Self-Administered Schemes)
• Stakeholder pension

Defined benefit pension can also be known as a ‘final salary’ or ‘career average’ pensions. Defined pension is arranged by your employer. The amount of pension you receive depends on your salary and the duration of time you have worked at your current workplace.

Need more information?
If you would like further advice on any of the matters above, CHN Financial Consultancy would be delighted to help you. Call 0113 3878240 or use the quick contact form to arrange an initial NO OBLIGATION review.