Pensions | What are the different types of pensions?

In the second instalment of this month Pensions series, we're looking at the different type of pensions you're entitled to.

If you missed last weeks post on why pensions are important, have a read here.

Understadning the different types of pensions avaialble to you is crucial to making a future plan for your finances.

You may think that retirement is a long way off - but you need to start saving NOW.

Here are the three types of pensions that you can start investing in:

1) State Pension

If you live in the UK and pay 35 years worth of National Insurance, you're entitled to the full state pension. Being aware of when you first start paying National Insurance, and for how long for, is important to ensuring you can access the full amount when you decide to retire.

2) Workplace Pension

As well as paying National Insurance contributions when working, you and your employer can contribute to a workplace pension fund. Each month you both invest a percentage of your salary into a pension pot. It is worth checking how much your employer contributes, as some companies may even pay the full amount on your behalf!

3) Self-Invested Personal Pension

If you're planning on living life to its fullest when you retire, maybe you have your eye on a around the world cruise or you plan to build your dream house, then a SIPP is something to consider. This is extra money that you set aside and invest for retirement to ensure you can afford all your post-work dreams.

If you want to read more about pensions, or investing in general, take a look at our Investing blog category!

Or follow along with our pensions series on our Instagram.