Occupational pensions

For people who work for an employer, occupational pensions are usually a good way of saving for a second pension. But whether or not this type of pension arrangement is suitable for you will depend on your personal circumstances, such as your working patterns and your pay. Most employers who provide occupational pension schemes contribute more to them than their employees, and some employers run schemes where you don ’t have to pay any money at all. Employers must give you details about any scheme that you are eligible to join, and it is important that you check it out carefully when you are looking into your pension options. Most people who join an occupational pension scheme will be better off when they retire than if they had not joined it.

What if I work part time?

If you work part time and your employer has an occupational pension scheme, you should normally be allowed to join it.

Example of how an occupational pension can help you

Kira is a 24-year-old office worker. She’s just started work with an employer who offers an occupational pension scheme. Retirement seems a long way off to Kira but she has been worrying for a while about whether she should be starting a pension. She was impressed that her new employer was prepared to make contributions for her. She also thought her employer’s scheme was right for her, so she has decided to join the scheme. If you want to know more about occupational pensions, please see Occupational pensions – Your guide (PM3). See the directory for details about how you can get a copy of this guide.