Pensions

Everyone needs to plan for their retirement. People are living longer and healthier lives, so it's even more important to think about how and when to save for retirement and how long to continue working.

Pensions can be confusing and many people don't know where to begin, especially when there are so many other things to spend your money on. But the truth is that a pension is one of the most effective ways to save money because you can get tax relief on the money you save in a pension scheme.

So, with a bit of planning, you can do a lot to help yourself get ready for retirement. Fairly small changes now can make a big difference to your life in the future - and you don't need to blow your monthly budget.

This section will help you understand the basic facts you need to know about pensions, including:

• what is available to you from the State when you retire

• some of the financial choices you can make to prepare for your retirement

• practical and realistic steps you can take to help you save for your retirement

A note about the future

The Pensions Act, which became law on 26 July 2007, makes changes to the State Pensions system. In the main, these changes will only affect you if you reach State Pension age on or after 6 April 2010. These changes include: