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Preparing for Retirement – Pension top tips for your employees

Preparing for Retirement – Pension top tips for your employees

31 August 2018

As an employer, you’re required to provide a workplace pension scheme for your employees by law. You must also automatically enrol your employees into a pension scheme if they:

  • Earn at least £10,000 per year
  • Usually work in the UK

As you’ll know, you need to pay at least 2% of your employee’s qualifying earnings into their pension. But, there is more you can do to help your employees to prepare for their retirement, starting with passing on our pension top tips below! You could send them to your staff as an email or put them up on your intranet…

Ben’s pension top tips: preparing for your future

Saving for a pension is becoming increasingly important, especially as the State pension rules and age are continuously changing. Your pension pot may just be your main lifeline after you retire from work, so here are some of Ben’s top tips to help you prepare for your retirement:

1. You’re never too young – or old – to think about retirement and prepare for your future! Whatever your age make sure you know what’s happening with your pension and plan ahead.

2. Don’t opt out, or down! You’ll be grateful in the long-run and every penny you save now counts – it will enable you to have a financially stable (and more carefree!) retirement. This article gives you an idea of how much people in their 20s should be saving.

3. If you’ve moved companies in the past, you may have more than one pension pot. You could consider combining your pensions, but first make sure it’s beneficial to do so. If it makes more sense to keep your pension pots separate, then keep the details of your different schemes safe so you can easily access them when you need them.

4. Maximise your contributions and consider adding more in if you get a bonus or pay rise. You’ll get tax relief on your contribution, so it makes financial sense!

5. Don’t get tempted to dip in early as your pension is likely to be your main source of income.

6. If you have any private pension schemes, beware of scams and do your due diligence on the pension company you choose. Find out more in this article by the BBC.

7. Check to see what State pension you may get on the Government website – however be aware that this is currently under review. You can also check your national insurance contributions on the Government website to see if there are any gaps, which would affect your State pension.

8. Check your life expectancy to see how much you will need in your pension pot. A lot of people underestimate their life expectancy so they don’t save enough!

9. Have you thought about pension inheritance? The government advises to make sure your pension provider has up-to-date details of your beneficiary if you die. Let all your pension providers know, if you have more than one.

10. For more information about saving for retirement, visit Ben’s blog on ‘getting the most out of your pension’.

If you’re struggling financially, you can turn to Ben – their free confidential helpline (08081 311 333) and online chat are open Monday-Friday, 8am-8pm.

About Ben

Ben exists to provide support for life to those who work in the automotive industry and their families. If you would like to find out more about how Ben can help you, visit www.ben.org.uk.