Most of us will retire at some point and at that time we will no longer have an income from our job. Therefore, it will be necessary for us to find money form somewhere else. It is not something that we necessarily need worry about, but we should make sure that we are confident that we will have enough money when this time comes. We may hope that the government will look after us but we need to consider whether that will be enough.
Government Pension
The government pension is only paid out to those that pay into it. You also need to have paid in a certain amount before they will pay you a full pension. You can check on the government website how much you have paid in and how much more you will need to pay in, in order to get a full pension. The way this is calculated has changed within the lats decade or so and so you may find it is different to what you thought. It is therefore well worth signing in to their website and having a look at this in order to calculate whether it is likely that you will qualify for a government pension. Also take a look at the amount and think about whether that will be enough money to keep you going through your retirement.
Extra Benefits
You may think that you will get extra benefits from the government if your pension is small or you do not qualify for one. This could be the case, but it will depend a lot on which party is in power and how much money is available to them. You could find that you will get lots of help or that you will get very little. It is wise not to depend on this as you cannot predict what might happen.
Work Pension
Many people have a pension through their workplace. These can be especially good if the employer pays in as well, as then you will get a bigger pension pot by the time that you leave the job. You also do not have to pay tax on money that you put into a pension so that can help as well. Work pensions can be really good and therefore you should have a look at whether your company has one and whether you are part of it. You may have some from previous jobs as well and even if you were not employed for long, they will all add to your retirement income.
Personal Pension
If you do not have much of a work pension or are self-employed or just feel you want more money, then you could consider using a personal pension. These are often not quite as good as a work pension, as you will not get an employer paying in, just yourself. However, they will still be a way that you can get some income when you retire.
Other
Some people will have other plans for retirement. They may plan on continuing to work or to invest money in other things that will give them an income. There are different things that they can do. They may have some shares that pay a monthly income, for example or buy a house and get rental income or something similar. It is wise to make sure that this alternative plan is likely to work though.
It is certainly wise to have some plans for retirement as you want to be able to enjoy it and not be massively limited because you do not have the money to be able to do the things that you want to do.