Bonjour lecteurs! Another month and more targets to set up and achieve for me over the next term. One of my goals to reach this year is to set up a good pension to make sure that I am safe for the future. When it is about finances, I am usually very good and organised. As a teacher, I was putting aside money each month with my public pension. But since becoming self-employed last year, I must admit I left the matter on the side. You too? Or have you benefitted from an Automatic Enrolment? It could help your future! Let me tell you how!
Women More At Risk With Pensions
A Scottish Widows Women and Retirement Report launched last year showed some alarming stats regarding women and their pensions. For too many, sorting out a pension is clearly the last thing on their to-do list.
Women tend to save up less money for their old age early enough and therefore put themselves at risk for their future. La raison? Ladies aren’t planning their pensions early enough. In your twenties, you sometimes struggle to pay some rent and you want to establish your career. Let’s be honest, when you have un peu of money on the side, it goes into your hobbies.
Once you hit the thirties, time to be a maman. No clichés here, this is what I did. My Baba became my priorité. While I was still saving up for a pension, working part-time meant that I was putting aside less money.
This is simply why a third of young women are not saving adequately, compared to 46% of men their age! Oui, I know… Those stats are quite worrying, especially when we know that women tend to live longer and earn less…
Time to think about a pension!
Automatic Enrolment – C’est Quoi?
Auto-enrolment is simple. It is basically a Government initiative to help more people save for later life through a workplace pension. Any employee aged 22 up to state pension earning over £10 000 can automatically enrol into a workplace pension scheme and their employer contributes towards it too.
Workplace Pensions Minimum Contributions Increase in 2019
Good news ladies! The pensions minimum contributions are increasing this month. What does it mean for you? It basically helps you save more money for your future!
And the way it works is super simple. While you only pay 4%, you will actually put 8% towards your pension pot. Your employer and the taxman will put the other half.
In concrete numbers? It means that if you earn £27 000, you would only pay an extra £36 each month.
Some people would be tempted to opt out altogether as it doesn’t seem much. But looking at the figures I just shared above, it will make a difference to your future and help you to remain independent.
Is It Worth It For You?
I know far too well what ladies can face up when it is about saving for their retirement. Maternity leave, expensive childcare costs, reduced working hours once we return back to work. It can feel like a good option to opt out of auto-enrolment to save up or use this money for something else.
But the truth is that it could have serious implications for your financial future. So it is definitely worth considering re-enrolling now if you decided to leave.
Have a look now at the Scottish Widows website.
If you have any further questions on auto-enrolment and how it can work for you, it includes a lot of info.
Regardez the infographics available and see what little change like an extra £36 a month can make of a difference towards your pension.
There is even a calculator for you to test your personal situation and give you une idée of how much you should save up as a minimum each month.
If anyone knows it better, it is you! You are aware of the challenges of household budgeting and providing for your little ones. And you don’t want to ask for financial support to your children.
Because they will have their own concerns when they are grown ups 🙂
Pas de panique here, regardez this Mumsnet Live with Scottish Widows. It covers many questions about your pension and your future, mamas.
It is very helpful and makes things much clearer if you were unsure. But if you want more info, head over to Scottish Widows Knowledge Centre.
Disclosure: This is a paid partnership with Scottish Widows for the #TakingOnYourFutureTogether Campaign. Pensions are a long-term investment. The retirement benefits you receive from your pension plan will depend on a number of factors including the value of your plan when you decide to take your benefits which aren’t guaranteed and can go down as well as up. The value of your plan could fall below the amount(s) paid in.