Pensions offer a uniquely tax-efficient way of saving for your retirement. Whether you are self-employed, employed in a small business, a civil servant or an employee of a multinational company it is now clear that it is down to you as an individual to fund your retirement. The nation’s average life expectancy has increased dramatically in recent years; because more of us are living longer, the cost of providing state pensions and other benefits has also increased significantly. State benefits will inevitably be diluted within the retired population in the coming years meaning the real value of the state pension will fall over time. 

To encourage greater participation in pension planning, the government introduced Auto Enrolment legislation, which came into effect in 2012. In 2015, the government introduced legislation to allow clients greater flexibility in retirement. Over the last ten years, the number of final salary schemes offered by even the largest employers has reduced, meaning there is a greater reliance on defined contributions schemes. These contribution-based schemes can be described as personal savings accounts and can be tailored to meet individual pension objectives. That said, the options are numerous and the legislation complex, so independent financial advice is important in this ever-changing world.