05/12/2024
Every employee has a pension, but not everyone knows enough about them. Today, we’re going to debunk some common myths.
❌ Myth 1: You only need to worry about a pension when you’re close to retirement.
✅ It’s best to start saving early and often into a pension. Starting a SIPP early can help set you up for the retirement future you want. The longer you’re invested in the market, the more time you have to compound your returns.
❌ Myth 2: You need to choose between a workplace pension and a SIPP.
✅ You can have both a workplace pension and a SIPP. With a workplace pension, you’ll often benefit from employer contributions of at least 3%, to help build your pension pot. A SIPP, on the other hand, gives you direct control over your investments and provider. You can easily monitor performance and make decisions about your portfolio. If you have any unmanaged or untracked pensions, a SIPP is a great option for consolidating them.
❌ Myth 3: Pensions are just a savings pot, they’re not invested.
✅ Pensions in the UK are typically invested in a mix of stocks, bonds, and other assets. They don’t typically hold large portions of cash for your retirement, in part, because over longer periods of time the value of cash will be eroded by inflation. A SIPP gives you the flexibility to invest your pension how you want.
Start a transfer of your pensions to Freetrade by 31 Dec 2024 and you can get up to £2,000 cashback. Learn more: https://freetrade.io/sipp-transfer-offer-2024
Capital at risk. SIPP eligibility rules apply. Tax treatment depends on personal circumstances and current rules may change. T&Cs apply. Transfer at least £10,000 to qualify. Annual subscription required.
