By: Simon B
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Paying into a pension
Your employer must offer you an occupational pension; pay a contribution worth the equivalent of 3 per cent of your salary into your personal pension, or offer you access to a stakeholder pension if your place of work has five or more employees. You don’t have to join a scheme that your employer offers you, but if you do, most employers will expect you to make contributions from your wages – which will be deducted before you get your pay packet.
Many employers will make contributions to your pension, although the law doesn’t say that they have to contribute. If your employer does, it’s usually well worth your while joining the scheme. Without an additional pension of some sort, you’ll be left to depend on the state pension for your income in retirement unless you have an inheritance, some property you can sell to generate income or some savings.
If you don’t have a pension that you can join at work, you can make your own provision through a personal plan or a stakeholder scheme