- Money Mentor
Who are Pension Wise? Here's what you need to know!
Updated: Aug 27, 2022
Pension Wise has been an initiative that's launched in an attempt to help the UK public save more money for their retirement, and if you're thinking about it now or if you already have a pension, here's what you need to know about Pension Wise.
Pension Wise: An Introduction
Pension Wise is a government service that offers free and impartial guidance on your pension options. The service is delivered by a team of qualified money advisers.
If you're aged 50 or over and have a defined contribution pension, you can book an appointment with Pension Wise. You'll then be given information on your retirement options, including how much income you could get from your pension pot.
They'll also talk about when it might make sense to take some of the money out and about the risks associated with doing so. And, as well as all this, they will give you some general financial advice for when you retire.
The Basics of Pension Wise
Pension Wise is a free service provided by the government that offers guidance on pensions. It is important to be aware of the different types of pensions and how they work in order to make the most out of your retirement.
There are two main types of pensions: defined benefit and defined contribution. Defined benefit pensions provide a guaranteed income in retirement, while defined contribution pensions depend on how much you and your employer contribute, as well as investment returns. You can check which type of pension you have through The Pensions Advisory Service.
Who can Use Pension Wise?
You can use Pension Wise if you're aged 50 or over and have a defined contribution pension pot. This includes both workplace and personal pensions. You must also be able to make your own decisions about your finances.
If you have a defined benefit pension, you can speak to Pension Wise for guidance, but you won't be able to use the service to book an appointment. To do this, call the Pension Service on 0800 345 7777.
How it Works?
You've probably heard the term pension before, but maybe you're not quite sure what it is or how it works. A pension is a retirement savings plan that provides regular payments to a person after they retire.
Pension plans can be set up by employers, governments, or other organizations, and they usually require employees to contribute a portion of their salary into the plan. When the employee retires, they receive payments from the pension plan based on their years of service and salary.
Pension plans are an important part of retirement planning, and there are a few things you should know if you're thinking about starting one.
Different Types of Pension Schemes.
The government has set up different types of pension schemes to ensure that everyone can have a retirement plan that suits their needs. There are three main types of schemes: the Basic State Pension, the New State Pension and workplace pensions.
The Basic State Pension is a payment from the government that you can claim if you reach state pension age and have paid enough National Insurance contributions. The New State Pension is a new type of state pension that was introduced in 2016.
It is based on your National Insurance contributions and not your years of work. Workplace pensions are set up by your employer and you usually have to contribute to them.
What do I do if I am already retired?
If you're already retired, you don't need to do anything differently. Your benefits will continue as normal. You may want to review your options and make sure you're on track to meet your retirement goals.
What do I do if I am close to retirement? If you're close to retirement, there are a few things you can do to prepare. First, calculate how much income you'll need in retirement and make sure your savings will cover it.
Second, review your investment portfolio and make sure it's allocated correctly for your risk tolerance.
Finally, consider whether you want to downsize your home or relocate to a cheaper area.
Pension Wise Conclusion
You have a lot to think about when you retire. But one of the most important things is how you'll receive your income. Will you have enough money to cover your costs? One way to ensure a comfortable retirement is to start planning early.
And that's where Pension Wise comes in. They are here to help you understand your options and make the best decision for your future. Pension Wise want to help you find the right plan for your retirement.
We're all different, so there isn't just one solution. They can help tailor-make a plan that will suit your needs, whatever they may be. It might seem like a daunting task now, but it will pay off in the long run and give you peace of mind - so what are you waiting for? Contact them today