Former US president Theodore Roosevelt once said that “old age is like everything else. To make a success of it, you’ve got to start young.” Whilst Mr. Roosevelt probably didn’t realise it, he could have also been talking about something we all rely on in old age, a pension.
Now, let’s be honest, pensions aren’t exactly high on the list of things people love talking about. After all, a pension is something for a time so far in the future for many, that it is hard to really comprehend. Also, with life putting enough demands on the money we do have when we are younger; to buy a property, raise a family, and do other fun things, the idea of putting money away for 20, 30 or 40 years in the future can be difficult for some people to grasp.
However, if you consider that the average person in the UK will live until they are around 85 years of age, it is possible that you could spend almost a quarter of your life in retirement. If you then take a moment to think about the things you hope to do when you retire, ensuring you have enough money to live and enjoy life, makes learning about pensions a lot more important.
Of course, when we retire the Government does give us a helping hand. If we work and pay national insurance contributions for at least 10 years, we receive a state pension. Today the maximum state pension is just over £9,000 a year but this is unlikely to be enough for most people to have the retirement they would hope for. Nowadays, most employees are automatically enrolled into workplace pensions with their employer making contributions on their behalf to boost their pension saving further. But, as with any form of saving, how much you pay into your pension and for how long are two key factors in determining the kind of lifestyle your pension will provide when you retire. The fact that a small additional amount saved each month when you are in your 20s could mean thousands more in your pension pot at retirement, or that you can make additional lump sum contributions to your pension, are important things to know. As is the fact that you can draw down some of your pension pot tax free before you retire. These things that could make a big difference when you finally get to put your feet up and retire.
That is why Better With Money has developed a webinar on pensions. It is aimed at employees of all ages and provides a fun and informative way to help them understand pensions, make the right decisions and work towards the sort of retirement they would like.
Whilst Theodore Roosevelt was wise when it came to old age, he didn’t always get it right. He also said that “nothing in this world is worth having or worth doing unless it means effort, pain and difficulty” on which we disagree. When it comes to providing employees with the knowledge and tools they need to improve their financial wellbeing, it shouldn’t be hard. We think his wife, Eleanor, had better advice: “do the thing you think you cannot do”. That is why we help employees do something many think they cannot do, such as understand pensions, or become Better With Money.
If you would like to find out more about the courses Better with Money provides, view our webinars