Pensions Defined

What is a pension?

A pension is really a way to save for retirement and it's a way to put money away while you are working so you actually have an income when you stop working in older age.

How do pensions work?

Pensions come in a few shapes and sizes but are essentially the same thing. You put money in while you're working, often a percentage of your income, and then you can take some money at the other end when you retire, and that's generally when you're in your 60's.

Why do I need a pension?

If you don't have a pension, then you can really struggle in retirement. The basic state pension isn't very much, and you really need to try and supplement that with some additional income so that you're not having a poverty stricken retirement.