Pensions and retirement

There are three different types of pensions: state pensions, personal pensions, and company pensions.

State pensions

Anyone with enough National Insurance contributions can claim a state pension after reaching a certain age. The age at which you can claim this pension is 65 for men and 60 for women, The age at which you can claim this pension is 65 for men born before 6 December 1953 and between 60 and 65 for women born after 5 April 1950 but before 6 December 1953. If you are born after those dates you can check your pension age by going to http://pensions-service.direct.gov.uk/en/state-pension-age-calculator/home.asp.

Your employment history, marital status, civil partnership can all affect the amount of pension you may be entitled to. A factsheet on the state pension by Age UK provides a good overview of the state pension.

To help you plan you can ask for a pension forecast to see what state pension you might be entitled to. You can request this online or by post. 

You may be in a position to take out a personal or a company pension earlier in your life. Usually the earlier you have investments in place, the more money you will have available to you when you retire.

Personal pensions

With this type of pension you put money in and then the pension company (which can be your bank, building society, life insurance company or investment company) invests this money on your behalf. You can decide how much money you want to put in and you will get tax relief on this. The earliest you can begin to draw a personal pension is the age of 55.

Company pensions

These pensions are set up by employers for their employees. Sometimes your employer will also contribute money to your pension. You will get tax relief on the money you contribute.

Choosing a pension can feel daunting as there are many to choose from. You can get help from the Pensions Advisory Service who provide information, advice, or guidance.

Having a pension is not the only way to save for retirement.

If you are interested in finding out about other investments then DirectGov provide information on a range of ways that you might be able to save.

A professional financial planner will help you organise your money in the way that is best suited to you. The Institute of Financial Planning is a professional body of planners and can provide information as well as helping you find a planner in your area. You can visit their website or call them on 0117 945 2470.

There are a wide range of benefits that are available to people in their retirement.

These could include pension credits, cold weather payments, free TV licence, or winter fuel payments. You can find information on the benefits available to you on the DirectGov website. DirectGov can also give you general information on all money matters in old age and retirement.

If you need help in claiming any of the benefits you may be entitled to or wish to challenge a benefit decision then you can visit AgeUK's website or call them on 0800 169 6565.