International Youth Day
Today is International Youth Day, a special day dedicated by the United Nations that celebrates young people’s contributions to sustainable development and peace. A key part of sustainable development is ensuring that what we do today will continue to benefit us in the future. One of the best ways young people can plan for their own future is by making sure they are saving towards a sustainable income in retirement.
A pension is a great way to save money towards the costs of later life. To help more people save enough into their pension, the government introduced automatic enrolment in 2012. This means employers are required to set up a pension for all eligible workers and pay money into it.
Of course, you have the choice to opt-out of the pension, but you will then lose out on tax relief and contributions from your employer. Tax relief is one of the great advantages of a pension. You typically don’t have to pay tax on your pension savings as normally it comes straight from your pre-tax salary. For this reason, some people choose to pay in more than the minimum.
If you do decide to opt-out, you should be aware that you’ll be re-enrolled again after 3 years. If your circumstances have changed within this period, you might want to consider staying in the pension scheme and start to build up some savings, benefiting from tax relief and your employer's contributions.
Starting your first pension can seem daunting, that’s why we’re here to help with any questions you may have about automatic enrolment and how it affects you. Please contact us on: 0300 123 1047 or use our live webchat in the top right-hand corner.