Pensions are talked about a lot, but many people still don’t feel confident about them and are not saving enough. Auto-enrolment, introduced in 2012, has helped by making workplace pensions easier to join but there are still plenty of misunderstandings around how pensions really work.
You may have to work longer than you expect
More people are working later in life, with many staying in jobs well into their late 60s. As life expectancy continues to rise, future generations could find themselves working into their 80s or even 90s if they want a comfortable retirement. The state pension age is already increasing, and it’s likely to go up again over time.
Women often retire with less
On average, women’s pensions are worth thousands of pounds less than men’s. This is usually linked to career breaks, part-time work and lower pay. Because of this, it’s important to plan ahead and keep pension savings under review, as well as sorting practical things like an LPA online, such as the examples seen here, https://powerofattorneyonline.co.uk/ to make sure decisions can be managed if needed later on.
Auto-enrolment is helping people save
Millions of workers are now paying into pensions because of auto-enrolment and employers are required to have schemes for eligible staff. You can read the official guidance on how it works here.
Women live longer than men
Women tend to live around three years longer than men, which means their pension savings often need to last longer too. As people live longer overall, having a good pension becomes even more important.
