Saving for a pension
Save for a pension – and you’ll have more to live off in the future.
What do you need to think about before you start saving?
Your pension is the money you will live on in the future. The National Insurance Scheme contributes one part, the employer contributes one part and you need to save the rest yourself. There are many ways to save for your pension. You need to find the way that suits you best. Things to bear in mind:
What is the best way to save for a pension?
The best pension savings scheme is the one that gives you the opportunity to reach the amount you need for a long life as a pensioner. If you’re going to save for longer than 6-7 years, you should choose equity funds or pension insurance. This will probably give you the biggest possible pension.
Start saving for a pension now
The most important step when saving for a pension is getting started! Start saving for a pension now and you’ll have more to live off in the future
Which steps should I take?
Tied-up pension savings in an individual pension savings (IPS) account
There are many ways to save for your pension. Saving in mutual funds in an individual pension savings (IPS) with a tax deferment is perhaps the best known. Here the money is tied up, and you can start disbursements when you reach the age of 62.
The advantage of IPS (individual pension savings) is that you get deferred taxes.
Have you influenced your pension?
Everyone who has a defined-contribution pension at DNB is the manager of their own pension. It can therefore be a good idea to know where the money is invested – it can make a big difference to your pension disbursements.
Historical returns are no guarantee of future returns. Future returns will depend, among other things, on market movements, the skill of the Portfolio Manager, the fund’s risk level, as well as administration costs. The return may also be negative as a result of mark-to-market losses.