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If you’ve been maximising the frugal lifestyle and slaying the debt or saving for your dreams holiday, then go you! You rock!
But at some point, we must confront the next stage of truly managing our finances, and that is getting a pension and looking after it.
I speak from experience when I say that pensions are confusing. It feels like they designed that way so that you don’t ask too many questions and accept the decisions that these finance-y people make.
Personally, I like to be a bit more involved. I like to know what my pension is doing and how it is going to support me when I am no longer willing or able to work to support myself.
There might come a time in your life when you no longer want to work due to old age. In the UK, the state pension age is 65 years old, but rising to 68 for people my age. Meaning that you can start claiming your state pension on your 68th birthday.
But the state pension is currently £129.20 a week, which works out at £6,718.40 a year. Personally, I do not think that is enough for all my plans for retirement. It’s not really enough to even live on, let alone all those travel plans I’ve got.
Hence, paying into a personal pension regularly, in large quantities and starting as young as possible is your best hope of ensuring that you don’t end up old and poor.
If you start looking into pensions, it can quickly become overwhelming. It has its own set of jargon and there are different types and maybe you’ve worked at lots of different places and you have lots of different pensions.
Luckily, PensionBee has come up with a service that simplifies the pension industry. From an app that enables you to draw your pension pots together and manage them directly on your phone, to providing transparency on your investments, it makes everything much easier.
In addition to this, they make it easy to contribute to your pension, meaning that you can give your retirement plans a healthy boost.
PensionBee offers a choice of seven plans in which you can combine your pension pots and choose one to invest in. There are two plans that offer a more ethical approach.
The first one is the Future World plan. This prioritises investment in generating revenue through low-carbon activities. It is a great choice for those who want their money invested in companies that are actively seeking to reduce their carbon footprint.
Another interesting choice is the Shariah plan, which is investments based on the Islamic principle of finance. This excludes investments in alcohol, tobacco, gambling, weapons and the finance sector.
Therefore, through PensionBee, you can have some control over how your money is invested and do so according to your own beliefs.
Regular readers will know that I strive to make choices with my money that both benefit me and the planet. Many of you too will make moral choices with your money such as not buying make-up that isn’t cruelty-free or choosing to boycott brands.
So, why should these moral choices be disregarded when it comes to your pension? The answer is they shouldn’t.
What we do with our money has a huge impact on the world around us. We have the right to make informed choices about where it goes.
Remember: as with any investment, capital is at risk.
Disclaimer: Remember the information you read here does not represent advice. Any ideas or suggestions are just that and may not work for you. Read the full disclaimer here.
Looking After Your Pennies is an eco-friendly personal finance blog written and managed by Charlotte Jessop.
I write on a variety of topics including frugal lifestyle, eco-friendly living, money making ideas and generally how to make your money go further.
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