Regular savings habit – If you have a workplace pension plan, it’s easy to stay in the habit of saving because payments are usually deducted directly from your paycheck. You don’t have to worry about any of this because when you join a company, you’re automatically enrolled in the pension scheme, making it extremely simple to save this way.

Employer contributions – As part of a workplace pension scheme, your employer must contribute at least 3% of your qualifying earnings to your future. Some employers will pay more than the minimum, and others will match your contributions if you do. If you leave the scheme, you will miss out on these contributions.

Tax relief – When most people contribute to a pension, they will receive tax relief from the government, which is one of the scheme’s major benefits. Individuals currently receive at least 20% tax relief from the UK Government on pension payments, which means that it will only cost you £80 to invest £100 in your pension plan. Most people are entitled to tax relief on their pension payments up to the highest rate of income tax they pay. This usually means that the benefits are greater for higher or additional rate taxpayers.

Option to contribute more – You can contribute more to your pension than the minimum amount required, and doing so can be beneficial in the long run. Increasing your payments increases the impact of compound interest, which can result in a much larger retirement pot.

Please contact us for more information on how we can help protect your future financial well-being and the options available to you.

Source data: [1] Research conducted for Standard Life by Opinium, among 2,000 UK adults between
2–6 September 2022. All results are weighted to nationally representative criteria.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS PLAN HAS A PROTECTED PENSION AGE). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP WHICH WOULD HAVE AN IMPACT ON THE
LEVEL OF PENSION BENEFITS AVAILABLE. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.