The cost of living crisis is affecting many people at the moment, none more so than those workers in the UK approaching pension age.
According to market research analysists OnePoll, 20% of all adults who are approaching the pension age are in fear of their retirement pot.
Of course with all pensions you must get advice from a financial planner.
The UK pension system is designed to provide a range of benefits to individuals who have paid into it throughout their working lives.
There are a number of benefits for taking up a pension in the UK.
A guaranteed income in retirement: The UK pension system provides a guaranteed income in retirement, which can help to provide financial security during your golden years.
Tax benefits: Contributions to your UK pension are tax-free, which means that you can receive tax relief on your contributions. Additionally, the income you receive from your pension is subject to income tax, but it is often lower than your pre-retirement income, which can result in a lower tax bill.
Employer contributions: Many employers in the UK offer pension schemes to their employees, which often include employer contributions. This means that your employer will contribute to your pension pot, which can help to boost your retirement income.
Flexibility: The UK pension system is designed to be flexible, which means that you can choose how you want to access your pension savings. You can take a tax-free lump sum, receive regular income payments, or opt for a combination of the two.
Inheritance benefits: If you pass away before you have used up all of your pension savings, your remaining savings can be passed on to your loved ones tax-free.
Overall, the UK pension system is designed to provide individuals with financial security in retirement, while also offering tax benefits, employer contributions, and flexibility.