3 Benefits of Pension People Miss Out On
So many employees and self-employed people do not pay attention to how their financial future will be. Can you tell me how your financial future will be like when you do not have the strength to do as much as you are doing now. People are so engrossed in the past and present while failing to pay more attention to the future; the time you might not be able to work or you attain the age of retirement. How well you have prepared for the time now determines the quality of life you live . What does the future hold for you financially? This is a question many people do not want to ask for either fear of what to discover( lack of preparedness or thoughts that the future is a far away time). For any of the reason, you have to come to terms with reality. Below I share 3 sure benefits to get from pension scheme participation. A lot of people miss out on this unfortunately.
A sure means to get a top up on your earnings/income because employers always have a percentage contribution to the scheme if you participate in the scheme. The government also encourages employers to do this, Participating or contributing to your company’s pension scheme is a sure way to get paid more from your employers. Most, if not all the scheme have the employers contribute to it based on your contribution. There is o way you can get that money from your employer if you do not participate or contribute to your company/employer’s pension scheme.
All your contribution to the pension scheme is tax-free. The government refunds the tax deducted on the portion / amount you are contributing to the pension scheme. This is the way the government encourages or inspire employees to register and contribute to their companies’ pension schemes. This is a sure means of getting money from the government. E.g. if you contribute £100 to your company’s pension scheme and your income tax rate is 20 %( i.e Tax you pay on your wages/salary) ; the money that is effectively invested in the pension scheme is 120 i.e. 100 plus 20% (20) = 120 not 100 deducted from your wages/salaries.
Contributing to your employer/company’s pension scheme is a making future plans for retirement income. More than 70% of people end up little or no plan for retirement, hence you find that when people retire they have to make a downward adjustment in lifestyle to be able to afford it. This affects the quality of their lives because little or no plan has been made for retirement. Contributing to the pension scheme is an indication that you have plan for that future hence you design that future life you want.