Should I have a pension?

Should I have a pension?

According to research from AXA, the average age that Brits would like to retire is 58 years old. The age we expect to be able to afford to retire is 64 years old. However, the average age we can actually afford to retire on average is 71 years old.

It is true to say that pensions often receive bad press, but it is worth putting some of your money into a pension product because:

By investing in a suitable pension plan you will benefit from an instant boost in the form of tax relief. For example, if you want £100 to be invested in your pension, then assuming you are a basic rate tax payer you will only need to pay £80, with a £20 boost in tax relief, taking the total contributions to £100.

The money you invest is only available from age 55. Therefore you will build a retirement pot without the temptation to dip into it.

If the opportunity arose, in the future you could use the pension pot to purchase a share in Chambers.

There now exist flexible and transparent pensions which offer very good value for money.

However, for many barristers starting out, the reality is they just can't afford to make any contributions whatsoever. We find that on average barristers can start to think about pension planning around three years into their careers.

This answer was last checked May 2017. This answer is for general guidance only. It provides an outline, and may not include points which are important in your case. You should not rely on this answer without taking individual advice based on the full facts of your case. The information given was correct at the time of release.