How to set up a pension

A pension is a great way to plan financially for your future once you retire. There are two main types of pensions: personal pensions and workplace pensions.

How to set up a personal pension

With a personal pension, you’ll set aside money for your future into an account with a specialist pension provider, like True Potential Investor. How you set up your personal pension will differ between providers, although the most important factors to consider are:

  1. Your provider
  2. Your pension type
  3. How you’ll invest

You can find out more information about how to set up a personal pension here.

How to set up a workplace pension

Your employer is responsible for setting up your workplace pension. Similar to a personal pension, it’s a way of contributing a proportion of your wages each month towards your retirement with the aim of growing your funds. In many cases, your employer will contribute too, and you may receive tax relief from the Government.

By law, all employers must provide a workplace pension through automatic enrolment by 2018. You will be automatically enrolled onto the scheme if you are an employee who is:

  • Between 22 and the State Pension age
  • Earning at least £10,000 per year
  • Not currently in a pension scheme

You do not need to set up a workplace pension, your employer will do it for you. If you do not meet these requirements, you can choose to opt in, or alternatively, you can also opt out.

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