When Should I get a Pension?

Most people tend to enter retirement with some sort of pension. Some people just rely on the government pension but many do not realise that they have changed and you have to pay in for a long time to now be eligible for one. It is worth checking out the gov.uk to understand how this works. You can also log in and find out how much you will be eligible for. Even if you are entitled to a full government pension it is not lots of money. It is therefore worth considering alternatives. Many people get a secondary pension and these are something which different people get at different ages. It is good to have a think about when might be the right time to get one.

As Soon as you Start Work

If you work for a company with more than a few employees they will have to join you in to the company pension scheme. This is well worthwhile, as they will usually pay in as well as you and you do not have to pay tax on money that goes into these pension schemes. Therefore, you can start saving some money up for retirement right away. The sooner you pay in, the larger the pension pot will be when you want to start taking money out and this will mean that you will have more money to see you through your retirement.

Once You are Earning a Decent Amount

You might decide that you want to wait until you are earning a decent amount of money before paying into a pension. You may fear that if you use some of your salary towards your pension, you may not have enough left for everything else that you need. This is an understandable concern and we often have a lot of things to pay for in younger adulthood. We may be saving for a deposit, paying a mortgage, repaying any same day loans you may have taken out, building up savings, paying for a family or all sorts of other things. These costs can all add up and we may find that we need to save as much money as possible for these things. We may just not have enough left to contribute towards a pension as well.

There is a lot to learn about pensions.

Once Your Children have Grown up

If you have a family then they will be expensive and so leaving paying in a pension until then could seem like a good idea. You should have more money available to you and therefore be able to afford to make the contributions. However, some children live at home for a very long time. Some need financial help when they leave home and there might be grandchildren that need help as well. There is even the chance of ill -health and no more earning potential as well. It could be a risk leaving it this late.

Near to Retirement

Once you get near to retirement you will have to put lots of money into a pension scheme in order to get a decent amount back out. This might not be possible as you may just not have the time to earn enough money. You may also still need to support your family or perhaps want to start winding down and reduce the number of hours that you are working. It could be far too late now, unless you have managed to take on a job that pays far more money than you actually need.

So, it is best to start by paying in as early as possible. It can be easy to think that you will have more money available as you get older, but we can not predict what might happen with regards to what our job will pay and what things we will need to buy. Therefore, it could wise to start right away. Even if you can only put a little bit of money in, it will all add up and this will mean that you will be able to accumulate quite a significant pension pot once you have retired.

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