WHEN you work in the construction industry, it can be hard to look past the project you are currently working on as there will be so much to focus on.
While it is smart to be focused on the task at hand, it is important to plan for the future particularly when it comes to retirement and your pension.
A pension will provide you with more money to enjoy when you finally decide to ‘pack it all in’ and start to lead a life of luxury.
What is more, if you are self-employed – as many builders, plumbers and carpenters are – then you will need to plan for your future even more.
Having a pension and planning for retirement is incredibly important, but it seems the total of savings has dropped amongst millennials since 2016 which is a cause for concern.
Confusion over pensions
One of the main reasons millennials and other groups are contributing less to their retirement is confusion over how pensions work. However, the duty of your employer to explain how pensions work, regardless of the industry.
Open a dialogue with your employers so that they can explain the process in more depth, if needed.
Learning about pensions
Portafina is a brilliant resource for learning everything you need to know about pensions. Here you can learn how pensions work, the benefits of having a pension, the different types of pension are available and how to manage your pension. Portafina can be used to make the intelligent decision about your pension so you can build towards a brighter future once you decide to retire from the construction industry.
One of the key aspects to be aware of when it comes to pensions is tax relief. When you add funds to your pot, the UK government will refund the amount of income tax that you've paid. This will help you to make huge savings in the long run (although there is a limit).
Additionally, there are tax breaks: the funds that you add to your pension are not taxed.
Essentially, this means the more savings that you put into your pension pot, the more money you’ll save as there is a snowball effect - this is compound of interest which Albert Einstein once claimed was “the eighth wonder of the world”.
Peace of mind
It is understandable millennials and other groups are struggling to add to their pension due to the cost of living and rent and property prices, but saving a small amount on a regular basis can go a long way and provide important peace of mind for you and your family.
Visit Portafina Discovery to find out more about pensions and how they can help to build towards a comfortable retirement after retiring from construction. You can also receive helpful updates at the Portafina LinkedIn, Portafina Facebook, Portafina Youtube and Twitter pages. Check out Portafina jobs for a rewarding career related to pensions.