Opting in to Workplace Pensions: The Benefits in a Modern Economy
While the British economy remains robust, this growth cannot be guaranteed for any prolonged period of time. Even though experts may be claiming that Britain is set to supersede Germany as Europe’s leading economy by 2030, this is based primarily on optimistic projections and the assumption that there will be no considerable decline in the future. With growth in the property market beginning to diminish, a period of decline may be closer than people anticipate and therefore something that could derail any sense of short-term expansion and prosperity.
With this in mind, it may be time for British citizens to make plans for safeguarding their financial future. Investing into a workplace pension plan may be the ideal place to start, especially for those with a regular salary, a proactive outlook and a healthy level of disposable income. Consider the following benefits of prioritising pension contributions in the current economic climate: –
- Embrace the Benefits of Passive Income: Passive income is the term given to money that can be earned through and investment or indirect action, and it can help to significantly boost your long-term earning capacity. Once your money has been committed to an investment account with a significant rate of interest, you can simply sit back while your wealth gradually builds. Over time, this can create a substantial fund that can help to sustain you in your old age, while also taking the stress out of planning for life beyond work and career fulfilment.
- Maximise Earnings through Employer Contributions: Interesting, workplace pension contributions will become mandatory in the UK by 2017. This means that if you opt in to a workplace pension scheme, your employer will be legally obliged to match your contribution throughout the duration of your contract. This can significantly boost your earnings, and ensure that your investment is grown in line with your expectations. The government has backed this initiative for a reason, as it wants to encourage voters to take responsibility for their own financial future.
- Create a Long-term Financial Contingency: In 2013, banking giant HSBC released a report that highlighted the ‘failure to save’ as a global epidemic. At the heart of this was an international pension’s crisis, which has left millions of retired citizens with insufficient private or state funds to support them in their old age. By committing to a workplace pension and utilising knowledgeable service providers such as www.pensionswms.co.uk, you can minimise this risk and prioritise the secure and prosperous retirement that you deserve.