Confused about pensions? You are not the only one...

ARE you looking forward to retiring? After years of the daily grind, you might be fantasising about an extra hour or two in bed and less stress. But are you prepared for when the great day comes and you’re free from the 9 to 5?

Retirement might seem pretty far away for many people. For others, it’s a constant worry about making ends meet. That’s why we need to have a chat about pensions and retirement planning.

Many of the people I speak to worry because they don’t know much about pensions. So I’m here to say to you, don’t!

Pensions are complex, which is why we’re launching a campaign to make things simpler. If you’re struggling, here are the basic facts.

One of the big, off-putting things about pensions are all the terms. So let’s tackle that head on! Don’t worry about the tons of different types of pensions or complicated explanations. Find out what pension(s) you have first.

If you’re in the market to buy one, ask your adviser to spell it out in simple terms. Then ask them to make it even simpler. Remember – it’s your money. If you’re paying for advice, that’s the least an expert should be doing for you!

There are three main types of pension. The state pension (paid for by the Government), ‘occupational’ pensions (your pension through work) and private/personal pensions (which do what they say on the tin).

The state pension comes from your National Insurance (NI) contributions over the years. When you get it depends on when you were born, with lots of controversy recently around the decision to move women to the same retirement age as men.

The age itself is creeping Pensions can be confusing ever upwards I’m afraid.

Work pensions come in two main types. Final salary (or defined benefit) pensions are dying out, unfortunately. Most of us have ‘money purchase’ (defined contribution) pensions now.

Some people opt to combine their previous work pensions into one or move your pension to a private one.

If you’re transferring or taking out a private pension, you can’t beat good advice. Make sure you ask for everything to be explained simply and in writing. Ask how much commission the business/pension company will take.

And don’t ever be afraid to say you don’t understand.

If you need more information or want to make a complaint, check out Resolver’s guide at resolver. co.uk

Our friends at The Pensions Advisory Service (TPAS) have a great website with tons of information – you can ask them any question that you have on your pension, from finding a missing pension scheme to finding out how much you can save each year tax-free go to pensionsadvisoryservice.org.uk

And if you’re approaching retirement age with a money purchase pension pot and want to know about your retirement options, speak to Pension Wisepensionwise.gov.uk/en – it’s all free!

Most importantly, if you’re worried that you aren’t saving enough for retirement or just need help, speak up.

You’re not alone.

I want to know if you’re worried about pensions and retirement – so let me know what you think at yourstories@resolver.co.uk You can make a complaint at resolver.co.uk or talk to us at @resolver.co.uk or log on at facebook/resolvercouk