The rising cost of living is putting pressure on people’s finances. Whether it’s the cost of filling up your car, the checkout at the weekly shop or when submitting a meter reading, everyone’s feeling the pinch.
During these times it's important you understand what options you have, the additional benefits your pension has and where to go for more help.
For those currently paying in, you have the option to reduce your pension contributions. With 50/50 you can pay half the contributions and build up half the pension. For example, if you normally pay 6%, with 50/50 you would only pay 3%. This gives you the best of both worlds - you can continue saving for your future while also getting some extra take home pay.
Find out more about 50/50 here.
Pensions typically increase for all members in line with inflation. How much it increases by is based on the Consumer Prices Index (CPI) for September. CPI was 10.1% in September and we would expect pensions to increase by this amount. However we cannot guarantee this until the Treasury officially announce the pensions increase in February 2023. More information can be found here.
While it might be hard to stay positive, there are some reasons to feel good. With your pension, you are already saving and setting yourself up for a more comfortable future. Not only are you looking after yourself, but your family too with your pension providing valuable life cover.
All the uncertainty doesn’t just impact our financial wellbeing – it can also put a lot of pressure on our mental health too. Looking after your mental health is just as important as maintaining good physical and financial wellbeing in these challenging times – here’s where you can find extra support:
- MoneyHelper- moneyhelper.org.uk -Has lots of useful information, including budgeting tools and guides to help you take steps to stay on top of things
- Money Saving Expert - www.moneysavingexpert.com - Sign up to email newsletters like the one from MoneySavingExpert to receive regular savings tips.
- Mental Health and Money Advice – www.mentalhealthandmoneyadvice.org – offers specific guidance on managing your mental health and finances.