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Tuesday, 2 October 2023

Saving for retirement

You’ll probably have 20 years in retirement. A workplace pension is an easy way to start saving for it. There are several ways to build your income for later life. Take these simple steps to see how your saving blocks can build up.

Step one – find out how much you’ll get from the State Pension

The State Pension is one type of pension. It's a regular income you may receive from the government when you reach State Pension age. It is based on your National Insurance contributions. The full basic State Pension in 2012/13 is £107.45 per week for a single person. Find out more about how much you may get and when.

Step two – work out how much you think you want for your retirement

The State Pension is a foundation for your retirement. If you want to have more income in later life, you’ll need to save more during your working life. Use the future wallet tool to get an idea of what money you may need when you retire.

Step three – check when you’ll be enrolled into a pension at work

Starting from October 2012, millions of workers will be automatically enrolled into a pension at work. It’s an easy way to start saving. You and your employer will contribute. Plus most people will get a contribution from the government in the form of tax relief. Find out more and check whether you’ll be enrolled.

Step four – consider a personal pension

If you’re not being enrolled into a pension at work, there are other pensions which you can set up yourself at any time. One is a personal pension. Once you have set one up you can control how much money you pay into it. You’ll also get money added from the government in the form of tax relief.

Step five – consider other ways of saving

There are other ways to save for retirement. Many people choose savings accounts, ISAs and other types of investments.

These are all building blocks you can use to fund your retirement.

Nearing retirement

Even if retirement is coming soon, you may have more options than you think.

If you think you might not be entitled to a full basic State Pension, it's worth seeing if you can boost it. You can do this by paying voluntary National Insurance contributions. Paying Voluntary National Insurance contributions

You may be able to boost your retirement income by working a bit longer or by putting off claiming your State Pension – or both. Remember there is no fixed retirement age in the UK.

Check any old work or personal pensions that you might have. The Pension Tracing Service will help you find contact details.

When you come to taking any personal pension you may have, you could get a better deal if you shop around.

Additional links

Being enrolled into a workplace pension

Starting from October 2012, millions of workers will be enrolled into a workplace pension

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