OK. So pensions are boring... but free money is NOT! It's quicker and easier than ever to set these things up. Read on...
Any of us can set up and run a private pension online from contributions of £50 a month.
Our income in retirement is like a cocktail with three shots: State Pension + Work + Private pensions. Should you be topping up the first two with some private savings on top?
40-somethings are in a weird limbo. Too young for generous final salary schemes. And too old for the new workplace pensions to have gathered any pace. This Guide talks pensions for people who know what ra-ra skirts, Adam and the Ants and Grange Hill are.
Download our straight-talking Guide and find out how to turn £80 into £100, how to start a simple pension online and then get back to doing something more fun instead!
Time to sort this out
The tax relief is great. But there are some things to look out for.
There is a Lifetime Allowance of £1 million. More than that and you get done with nasty tax. Saving up a £1 million stash sounds like loads but if you earn a decent wage and start saving early, you might be surprised. Don't forget that – when smoothed over a decent timeframe – it's not unreasonable to expect the stock market to return about 4%-5% a year. Start early and your savings get bigger, quicker.
You can't generally put more than £40,000 a year into pensions so the free money game is capped.
Online more your thing? SIPPs are just a fancy name for DIY online pensions which give you control about how to invest you retirement savings.
Our three-page guide gives you the lowdown.
What's a self-invested personal pension?
Little note on all of this. Don't forget to think about inflation. This increase in the cost of living needs to be factored in. We can make plans with money today - and give you rough estimates in today's terms - but it will buy less in the future as the cost of stuff continues to go up.