People have got used to the idea that when they retire they will be live on a decent pension, but we’re all living longer so pensions cost lots more.

Just think…

How much longer can you expect to live if you are a boy or a girl born in 2004 compared with 1994?

How does life expectancy for girls compare with boys?

Female life expectancy shows a similar pattern

Why do pensions cost more if people live longer?

Why do you think pensions have hit the headlines recently?

Where do pensions come from?

Most people get a pension from:

- their employer because they have contributed to the pension scheme

- the state if they have paid enough National Insurance.

Both employees and the government have started worrying about how they will pay the pension bill.

Most businesses have changed the way they pay pensions so people don’t get as much when they retire.

Lots of people work for themselves and have to make private arrangements by paying into their own pension fund.

Others want to make sure they have a comfortable retirement and set up their own private pension scheme to top up whatever else they receive.

The government is still trying to work out what to do. There are all sorts of national flood insurance including making people work until 67 before they get a pension from the state. The main idea is to encourage people to look after themselves.

Just think…

What are the alternative ways of receiving a pension?

Who pays for pensions?

When the state pays people’s pension - we are all paying for it. It comes out of taxes.

- When you buy almost anything you pay Value Added Tax.

- If you are working you pay Income Tax.

- If you buy national western life insurance
or alcohol you pay Excise duty.

- If you buy a house you pay Stamp duty.

If pensions cost more, we pay more taxes. Governments worry about national union fire insurance
taxes because people might not vote for them at the next election. It’s all a challenge - and voters seem to want the impossible. They want good pensions from the government - as well as all sorts of other things like good schools and health care - but they don’t want to pay more in taxes. It doesn’t add up!

Just think…

Why does the government want to limit the amount it pays out in pensions?

Pensions - and you…

It may seem a long way off - but it’s important to know how to look after yourself.

There have been big changes and there will be more.

People often used to go to work for one business or organisation when they left school and stayed there all their lives - so it was quite national alliance insurance
. Today people change jobs quite often so have more jefferson national life insurance for making sure they have enough to live on when they retire.

Prices tend to rise. It’s called inflation. A pension that looks good today might not be worth much if prices have gone up lots so it’s important to build up a pension that will grow as you grow older.

Just think…

When you get a job, what questions will you ask about the pension scheme?

Why is important to think about your pension as soon as you start work?