Pensions is a complicated subject and the need for them often seems to be a long way off. Many people find this a good excuse not to think about them. But pension funds have tax advantages and are a particularly good way of saving. The over 45s, in particular, should think hard about providing for their future. Pension funds are of three main types:
� The state pension arrangements, both basic and earnings related.
� Company, government and local government schemes for their employees.
� Self-employed retirement schemes and personal pension plans.
If you are in a company scheme you can often make additional contributions. Ask your pensions or personnel department. Pensions, like life assurance, cost much less when begun early than when started late. All insurance benefits come from invested premiums and the income that accrues from those investments.
The longer the insurance company has been investing your premiums, the more pension you will get for any given rate of premium payment.