One of the most important factors is the amount of money needed for retirement. You need to differentiate your needs from your wants; this way you are more likely to have a proper idea of the exact amount that you need. This will help work out the amount you should set aside every month during your working life. A good pension calculator can help with this particular task. Saving for retirement should start as early as possible It is very important that workers start planning and saving for their retirement as early as possible. This will ensure easy payments and smaller amounts. The longer saving is put off, the more a worker will need to pay later on if they decide to target a greater pension amount. It is a fact that those who begin saving in their mid-twenties fare much better than those who start in their thirties and forties. It is important to use a good pension calculator to work out the specific amount to be saved each month or year for future retirement. Check for auto-enrollment into a pension scheme It has become the norm with UK employees to automatically enroll workers to a workplace pension scheme. Workers can then choose to opt out if they have a better private or alternative pension plan. This kind of arrangement initially started with large pension schemes but has become common even with small and medium-sized companies. Auto-enrolled employees usually have 1% of their pay deducted and put into a pension scheme with the employer contributing an equal or higher amount. Check if you are receiving government benefits The government offers tax relief to taxpayers who personally contribute to a pension scheme. This relief is usually paid into the worker’s retirement savings account which means an extra 20% for free. This benefit is automatic whether a worker contributes the money directly or through the employer. The extra amount is definitely a very useful addition. It is easy to check this with a pension scheme via phone, email or in-person query. Are there different types of pensions? There are a number of different pension plans. In the UK, the main distinction between the various pension plans depends on whether the pension is a money purchase or final salary. It is important to understand which particular type of pension is suitable or which one is offered by your employers. Many firms usually offer the final salary scheme. Money purchase pension schemes fall into various categories such as workplace pension schemes and trust based pensions.