Why should I think about my pension?

The Government believes that the best way for you to have a secure retirement is to use the basic State Pension as a start. If you want to increase your pension for when you retire, you need to think about the best additional or second pension option for you.

Whatever you decide about your second pension, it is important that you make informed decisions. You should also bear in mind that, in general, it is better not to delay making your plans and acting on them.

Most people will get some basic State Pension. But unlike employees, if you are self-employed you are not entitled to the additional State Pension (called SERPS until April 2002, and now reformed by the Government to become the State Second Pension).The Class-2 National Insurance contributions that you pay when you are self-employed only count towards the basic State Pension.

Also if you are self-employed, you cannot join an occupational pension scheme. But you can join a stakeholder pension or a personal pension scheme (or both).If you want to, you can make payments into a stakeholder pension and a personal pension at the same time.

An important starting point is to find out how much State Pension you have earned so far, and how much you expect to have earned when you reach State Pension age.

To get this information you can contact the Retirement Pension Forecasting Team on 0845 3000 168 and they will fill in an application form for you over the phone. If you have speech or hearing difficulties, a textphone service is available on 0845 3000 169.The line is open from 8am to 8pm Monday to Friday, and from 9am to 1pm on Saturdays. Or, you can write to Retirement Pension Forecasting Team, The Pension service, Tyneview Park, Whitley Road, Newcastle Upon Tyne NE98 1BA for a forecast application from (BR19) and a return envelope.

You can get form BR19 from your nearest social security office or Jobcentre (details are in your phone book).Or, you can download the form from the resource centre on The Pension Service website at www.thepensionservice.gov.uk

Once we have received your filled-in application form, we will send you a forecast of how much your State Pension is likely to be. This forecast will help you to decide whether you are currently saving enough for your retirement needs, and what more you may need to do.

The forecast is based on our knowledge of your current circumstances, and these could change. So, your forecast will be most accurate if you are near to your State Pension age. But it is best not to put off applying for your forecast until you are close to State Pension age. That way, you will have plenty of time to make additional pension arrangements if you think the amount of your pension will not be enough.

If you have looked at your forecast and you are not sure what to do for the best, you could get advice from a financial advisor. But remember, if you see an advisor you may have to pay for their advice.

You can get advice about private pensions from the Pensions Advisory Service (OPAS). See the directory for details of how you can contact OPAS.