09:01 22 May 2013
Gone are the days when pension schemes are a royal pain and are downright complicated. With the reforms on pensions, every employee will be automatically enrolled into a pension scheme from October 2012 onwards.
Businesses will be forced to pay a percentage of your wage to your pension account that will eventually provide a pension lump sum when you retire.
Now, the only thing that you need to think about is if the pension you’re going to get when you retire would be enough to enjoy a comfortable retirement.
As employers will pay only a minimal percentage of your salary to your account, it is best to make adjustments as early as possible.
Knowing just how much you’re going to need when you hit retirement is the first stage.
What kind of life do you want to have when you’re 67? Do you plan on travelling the world? Or do you plan to move to the suburbs and just enjoy the peace and quiet?
Knowing just how much you might spend every week once you retire will help you figure out how much money you need to put to your pension account.