2. To understand that pensions are a way of saving for retirement To appreciate that making longer term financial plans are a way of achieving financial security in later life

3. When I’m older… It seems a long way off, particularly when you’ve not even started your working career … but have you ever thought what you would like to do after you have stopped working?  What might your life look like?  What do you see yourself doing?  What sort of lifestyle would you like to have?

4. When I’ve retired… When your working life is over …. you will have retired however…you will still need to pay the bills and …there will still be things that you want to do So how do older people afford to live if they aren’t working?

5. Introducing pensions A pension is a form of saving for when you are older and no longer working. The types of pensions available are: 1. State pension 2. Workplace pension 3. Individual pension scheme – Personal pension – Stakeholder pension If we are in work then our employers will provide a scheme for us to pay into If we want to we can set up our own pension too in addition to a work place scheme We should all get this as long as we’ve worked for a certain number of years

6. What to remember now … Pension = A form of long term saving There is a state pension but it will really only help to cover the essentials You’ll be automatically enrolled into a workplace pension scheme once you start working You can set up your own additional pension fund and pay in regularly out of your income You will earn interest on the savings Tax breaks on pensions mean you get “extra money” The earlier you start saving the more you will eventually receive when you come to retire Currently £119.30 per week (2016) Your employer will contribute to it as well as you If you pay in £40 each month the government will give you an extra £10 – so you’ll have paid in £50 in total This is a good way to boost what you will receive when retired

7. Pensions activity save income tax National Insurance benefit thirty employers contribution annuity automatic enrolment fund stocks and shares investments standards lump sums

8. What to remember then… When you get to retirement age you will have built up a pot of money A state pension is only paid once you reach state retirement age Many work-based pensions will only start paying once you reach state retirement age You cannot get the money you have put into your own individual pension pot until you are at least 55 You can use the pot to get a regular sum at regular intervals for the rest of your life (after retiring) OR Cash in some of the pot as a lump sum and use the remainder for a regular payment Currently 66 but moving to 67

9. Golden rules Imagine you now have to tell a friend about pensions…  Write five ‘golden rules’ for them, these should include things to think about NOW and into the future.  Share some of your ideas with the rest of the class