Pensions for working women

What to do and when

The following is intended as a general guide. To find out what is best for you contact an independent financial advisor. There are advisors who specialise in financial services for women.

In your 20s
Join your employer’s pension scheme if you can. Consider a personal pension if your company does not run a scheme. The earlier you start paying into a pension the better. If you have a personal pension, remember to increase payments as your salary increases.

In your 30s
Pay as much into your pension as you can afford. An employee can pay up to 15 per cent of pay and perks into a company scheme. If you are getting divorced make sure you know how much your partner has in investments savings and pensions before agreeing a settlement. Don’t rely on your partner’s pension. If you are taking time out to look after your children, remember to think about pensions; you can now continue payments into a personal pension even if you are not in paid work.

In your 40s
Try to top up your pension either through additional voluntary contributions or by putting as much as possible into a personal pension.

In your 50s
Start thinking about when you want to retire. You can start drawing on private pensions from 50, although you will usually get far better value if you hold off. Your pension provider, or an independent financial advisor should be able to give you an assessment of the income that could be derived from your private pension savings. You can find out about your state pension entitlements by filling in DSS form BR19.

60 and beyond
If you are a woman born before April 1959 you will start receiving state benefits at 60, but the state pension age for women is equal with men at 65 for those born after that date.