What is a personal pension plan?
Can I afford it? 1. Debt Most people live with some degree of debt from loans, credit cards, hire purchase, mortgage etc. If your total level of debt is high and so your regular repayments are heavy, it may be best to opt out of the scheme so as to concentrate your financial resources on reducing that debt. But remember, the employer must make a regular contribution to your pension in addition to your own. If you decide to opt out, you will be foregoing those contributions. This is the same as giving up a pay rise. For this reason, even if your debt is high but your repayments are affordable, it might be financially beneficial to stay in the scheme. However, this is not your last chance to join the scheme. You can join at a later date when your debt repayments have become more manageable. If you have a high level of debt, you should get relevant advice. There are a number of free sources of debt advice such as: • Your local Citizens Advice centre • National Debtline on 08088084000 • Th
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