Most people start by saving what they think can afford from what is left over at the end of each month but eventually understand that they need to plan for what standard of living they want in later life and start to act accordingly. Whilst a Pension Plan isn’t the only way of saving for partial or full retirement it will normally be part of the solution especially whilst saving through an approved scheme is so tax effective in several ways. Firstly there is tax relief on the premium, secondly relatively tax free growth and thirdly a proportion of the accumulated fund is paid out free of all taxes.

In addition, recent changes in Pensions legislation means that Income Drawdown is now a real alternative to having to buy an Annuity with your accumulated pension plans, but careful consideration must be given to not spending all your savings and having to fall back entirely on state benefits, which most people consider to be inadequate for providing a satisfactory level of comfort at any stage of life.