Retirement savings are simply a tax-efficient way for you to save money for your future. You pay money into your savings and if you are part of a Company pension scheme like the Experian Retirement Savings Plan, your employer pays money in for you too. You can also add more to your retirement savings if you can afford to.

Your retirement savings are then invested in funds and over time the value of these should grow. When you retire you can choose to take your savings as:-

1. A single cash sum of up to 100% of your savings (25% being tax-free and the remaining 75% being taxable, some or all of which might be at the higher tax rates) or smaller, multiple cash sums (where 25% of each cash sum is tax-free with the remainder being taxed). This option is known as uncrystallised funds pension lump sum(s) or 'UFPLS';


2. A regular taxable income for the rest of your life from an insurance company, with the option of taking 25% of your savings as tax-free cash at retirement. This option is known as an 'annuity';


3. Smaller taxable cash sums from your savings as and when required, with the option of taking up to 25% of your savings as tax-free cash at retirement. This option is known as 'flexi-access drawdown' or 'drawdown'; or


4. A combination of all three options.

For further information, visit our June 2015 news item on the new Defined Contribution flexibilities. Providing for your retirement may not be a priority for you at the moment, but in the future when you no longer have an income from working, your retirement savings are likely to play a big part in helping you to have the lifestyle you hope for.  

Think about your future. Do you think you will have enough income to live on comfortably? You may get a State Pension but the State Pension alone is unlikely to be enough to live on for the majority of us. Did you know that the most you can get from the current State Pension is only £168.60 per week? (2019/2020) You can visit www.gov.uk/calculate-state-pension to find out when you will reach State Pension age and how much you may get.

It is important to think about how you can make the most of the money you earn in your working life by using the help provided by the Company and the government. You work for your money - your money should work for you too!