Why 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 £500 to be invested in your pension, then assuming you are a higher rate tax payer you will only need to pay £400, with a further £100 boost in tax relief savings, taking the net cost down to just £300 for a £500 investment.

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

You can determine the investment policy of the pension fund to a degree, so for example if the opportunity arose in the future you may be able to use the pension pot to purchase a share in Chamber's property.

Pensions now exist that are flexible and transparent in relation to costs which are easily switched between various providers. This allows you a greater degree of control so that you (or your advisers) can ensure good value for money.

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.