Why should you save for your retirement?
How can you save for your retirement?
How much should I save?
Pensions have gotten a lot simpler
Finding A Pension IFA
Personal Accounts – the new workplace pension plan from 2012
I hope you’ve digested all of that, because the government has proposed even more changes on top.
In the same year that the capital is hosting the Olympics, a new model of pension saving is planned, called personal accounts.
All employees aged 22 and over and earning more than £5,000 per year, who aren’t offered access to an employer pension arrangement, will be auto-enrolled into personal accounts in 2012.
You do have the chance to opt out, should you wish. But if you don’t let your employer know that you have opted out, you will automatically join the scheme and pay 4% of your salary into it.
Your employer will contribute 3% of your earnings, and an extra 1% from tax relief will be added in making a total of 8%.
So, if your employer doesn’t offer a pension scheme at present, they will have to offer personal accounts and it may be a good idea to stay opted in as you will receive employer contributions, a bit like a delayed pay rise.
However, as some means-testing issues have yet to be ironed out with regards to personal accounts, it may be worth seeking financial advice about whether you should opt out or not.
Pensions Simplification and what it means to your pensions savings
Changes to the State Pension
Personal Accounts – the new workplace pension plan from 2012
