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Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money.  If you have a question or need help, you can chat to them here.

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Quiz: Do I Need A Pension?

Question 1

What the earliest I can access my money?

Select an answer below

50
55

WRONG... The answer is 55

Pensions are a way of saving for retirement that means you lock your money away until you are at least 55. Everyone who has paid National Insurance can get a state pension, but it's not enough to live off, so it makes sense to start your own pension as early as you can.

Question 2

Are pensions tax free?

Select a answer below

Yes

WRONG... The answer is Yes

Pension schemes are tax-friendly. With workplace and personal pensions, your pension contribution will be taken before you’re taxed, meaning more money goes into your pension pot.

Your pension pot is also never taxed when it’s untouched. Once you start taking money from it, you won’t be taxed on the first 25% but you’ll pay income tax on the remaining 75%.

No

Question 3

How much do I need to put in a pension?

Select a answer below

WRONG... The answer is 10% Of My Salary

As a guide, a minimum of 10% of your salary needs to be saved each month over your working career. If you are putting less than this away, you need to top up later down the line.

Question 4

What are the 3 most common types of pensions?

Select a answer below

State, Workplace & Personal Pension

WRONG... The answer is State, Workplace & Personal Pension

State Pension

This is the standard government pension scheme that you can start claiming when you reach State Pension age. The new full State Pension, introduced in April 2016, is £155.65 a week if you’ve made 35 years’ worth of National Insurance contributions. You don’t have to claim your State Pension when you reach the qualifying age. If you don’t need it, and defer, then you get extra money when you finally do claim it.

Workplace pension

Employers now have to offer an auto-enrolment pension scheme to employees, where they’ll contribute a certain percentage for every 1% minimum employee contribution a month. This is now an opt-out policy, rather than opt-in, so if you really don’t want to take part then you won’t be forced to. But it’s always worth finding out about the benefits before you make a decision.

Personal pension

Also known as ‘defined contribution (DC)’, personal (or private) pensions are ones you seek out yourself. They’re great if you’re not working, self-employed, or just want to add to your pension pot. They’re often provided through insurance companies, banks, and building societies, so it’s definitely worth doing your research to find the best deals.

Thanks for taking the quiz, for more info take look at the articles below.

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Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money.  If you have a question or need help, you can chat to them here.

Launch Chat

Chat to the Money Advice Service
Monday to Friday, 8am to 6pm
Saturday, 9am to 1pm.