067 - Pension Breakdown Part 1 | What Are Pensions & Why Do I need One?
In this episode of the Mind Money Soul podcast, I’m going to be sharing the basics of pensions; why we need a pension, what they are and a breakdown of the different types.
This is the first of a 4 part series on pensions, starting with an introduction to pensions. To put it simply, a pension is a tax-efficient way of saving money for your retirement. In the UK we have the state pension age and the average retirement age - they are two different things which often get muddled up and technically you can retire whenever you want!
Having a pension is just one way that you can fund your retirement, you can have other income streams (just like how having a salary is one of the many ways of making money). For most people, your retirement income is going to come from 3 main sources; state pension, personal and/or workplace pension, and other forms of income such as property and investments. With all pension schemes, your money is being invested on the stock market into pension funds. If you understand investing and how the stock market works, you will feel so much more confident in how you are building wealth over time for your retirement.
In this episode:
Why you need a pension to survive and fund life
What retirement actually means
The state pension age vs. retirement age
Pension 101: what is a pension?
The different types of pensions
Understanding state, workplace and personal pensions
How much you can pay into your pension
Resources
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