Of all the confusing ideas and concepts out there, the pension is probably the one that causes the most confusion of all.
The fact is there are several types of pensions out there, and what you should be offered by your employer and what you get from the state does differ, which can add to the confusion.
However, because it is essential that you know what you will have in place and can plan for retirement, it is important to understand and work out your pension requirements as soon as you can - even if it seems a long way off, when you are in your twenties you should be thinking about pensions, in fact as soon as you start your first full time job!
Types of PensionThe types of pension are:
- Basic state pension
- Additional state pension
- Personal pensions
- Stakeholder pensions
- Company (occupational) pensions
- Pensions for self-employed people
Clearly there is too much to cover here in one article, if there is sufficient aim from readers we will look to write and provide a general outline of each of the different pension types in due course.