Life isn't always as simple as we'd like it to be. Some things take us by surprise and those surprises can cost money. Your circumstances will change over time and so may the lifestyle you expect to have when you retire. So flexibility is important when it comes to saving for the future, and when you want to access your money.
Currently, from age 55 (57 from 6 April 2028, unless you have a protected pension age), you'll have several options for what to do with the money in your pot. You may need to move your pot to another pension to access some of these options or to access them when you prefer.
You should get guidance or financial advice to help you with this decision. Pension Wise is a government service from MoneyHelper that offers free and impartial guidance to help you understand your options at retirement. Find out more at moneyhelper.org.uk/pensionwise or by calling 0800 280 8880 to book a phone or face-to-face appointment.
One of the benefits of your pension scheme is that your contributions are flexible. You can contribute as much as you like into your pension, although the total amount of tax relief you get on your pension savings is limited.
The money you save into your pension comes from your salary. There are different ways to make your contributions and they impact the tax savings you make.
During your working life, it's important to consider your retirement and the ability to enjoy life when you reach retirement. Saving into your workplace pension could help you do just that.
Auto-enrolment is a UK Government initiative aimed at helping more people save for the future through a workplace pension.