INSIDE! FIND OUT HOW TO MIX YOUR - PRAG
INSIDE! FIND OUT HOW TO MIX YOUR - PRAG
INSIDE! FIND OUT HOW TO MIX YOUR - PRAG
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IT’S ALL<br />
10 PENSIONWISE<br />
AB<strong>OUT</strong> YOU!<br />
Pensions can be complicated, but they are very important. Your pension is all<br />
about you getting the most from your retirement. How you manage your savings<br />
now will determine your lifestyle in the future. We want to hear from you and how<br />
you intend to plan for your retirement. If you would like to contribute to future<br />
PensionsWise issues please contact Adrian Devlin.<br />
Dave Hickman<br />
Olivia Preston<br />
Dave is a member of the Defined Contribution Section of the Scheme.<br />
The Scheme is non-contributory, so Dave accumulates benefits in the<br />
Scheme just by joining – unlike in his previous jobs when he would<br />
have to contribute to gain any contributions from his employer. But he<br />
decided to keep paying contributions anyway when he joined Bacardi, as<br />
he explains: “In my past jobs, whatever you contributed to your pension,<br />
the company would always match. So when I joined Bacardi, I thought<br />
I might as well keep on putting money into my pension, so that there’s a<br />
bigger pot when I retire. It’s a no brainer really. I’d pay more if I had more<br />
disposable income, but I feel I may as well do what I can for the time being<br />
to make my pot bigger. I’m getting married this year, and when I’ve done that<br />
there may be more spare cash, so I might decide to put more into it. And then<br />
when my mortgage starts to come down, I’d like to start paying more.” When<br />
Dave does eventually retire, he hopes to have saved enough to afford to play<br />
golf most mornings, and to go on holiday regularly.<br />
Olivia is currently paying AVCs into the Defined Contribution Section of<br />
the Scheme as a convenient way to plan for her retirement. “I thought<br />
it was best to consolidate all of my savings into a pension, because I<br />
wasn’t really saving much towards my retirement. I was saving into an<br />
investment account, and as I was only paying a small amount each month<br />
I thought it was better to consolidate it rather than have a small amount<br />
accumulating in another account. When you pay AVCs into the Scheme,<br />
you can also see it all on your benefits statement – it’s all really clear on<br />
the statements that are produced by Bacardi – and it’s much clearer than<br />
having lots of little savings pots sitting around all over the place.” Olivia<br />
urges member who are not paying AVCs to think whether they could<br />
benefit from paying them: “Paying AVCs can really boost your pension<br />
when you’re older, just by paying an extra £50 a month. And what’s £50<br />
a month? It’s just the equivalent of a night out! I’m sure that paying £50<br />
a month isn’t a lot towards a pension, but it all helps doesn’t it? And I’m<br />
sure everyone can afford to pay that!”<br />
STEP 4:<br />
<strong>YOUR</strong> PENSION COCKTAIL<br />
Maybe you’d prefer something more elaborate?<br />
How about a Bombay Bramble<br />
...You could boost your AVCs to give you a bigger<br />
pension leading to a more interesting retirement.
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