Pensions can be from the government or you can organise a private scheme. Many people are sceptical about the support they will get when they retire and are therefore choosing a private pension scheme. Many companies also provide pension schemes to employees.

There are many concerns about the present pension situation and the potential lack of provision in the future due to an ageing population, the ‘demographic time bomb’. It is vital that people are thinking about their finances in retirement long before they are at retirement age and saving money for their pension.

Pension planning

Private pension schemes

Employers' schemes

State second pension (known as S2P)

This scheme is the successor to SERPS (State Earnings Related Pension Scheme). Under that scheme, part of the National Insurance contribution (which was earnings-related) provided an additional amount added to the basic rate of state pension. Under this new scheme, employees may give up their right to the state second pension (known as contracting out) and instead receive a National Insurance rebate, which can only be paid directly into a personal pension scheme. Contracting out is not irrevocable, and you may contract back in to the scheme.

Further information

The pension service which is part of the Department for Work and Pensions provides more information about pensions