Company pension schemes 'vital'

Tue 26 Aug 2008 at 11:41 AM

Employees should aim to take full advantage of company pension schemes if they want to enjoy a good standard of living when they retire, it has been claimed.

According to the National Association of Pension Funds (NAPF), company schemes are a crucial part of saving for later life.

Michelle Lewis, senior policy adviser at the group, said: "It can never be emphasised enough that members of company schemes enjoy tax relief on their contributions as well as the benefit of any employer contribution."

She added that these types of saving schemes remain "vital" for those who want to live life to the full when they reach old age.

According to the 2008 Cost of Retirement report issued by Life Trust Insurance, retirement in the UK costs a typical household £413,000 and an individual living alone £326,700.

It also found that living longer is having a marked impact on the cost of retirement – with someone leaving work at 65 and living to 100 seeing their expenses rise to over £700,000.

click here for the latest employment opportunities