When approaching retirement, it can be daunting to think about finances and pension schemes – particularly as there are so many different types. Many begin saving for their pensions as soon as they start earning a wage, through state pension schemes. These are provided by the government, and are able to be drawn at the age of 55 if, throughout your working life, you made National Insurance contributions.

The state pension allows you to receive a weekly instalment – however, this is rarely sufficient to secure a good standard of living. This is why it’s important to try and start saving as early as possible.

Those who are in the workplace should be involved in a private pension scheme, in which the employer arranges for both you and them to contribute to the pension pot. However, the amount you receive can differ depending on the scheme that your employer chooses. Anyone who earns a low income can have their pension topped up by the Pension Credit, which ensures that all people in the later stages of life receive a minimum amount of income.

Those who are self-employed often opt for a personal pension, in which you’ll choose where your contributions are invested. Personal and stakeholder pensions can also be used as an additional saving option to workplace pensions – or, alternatively, as an option for those who are not working, but can afford to pay into a scheme.

The majority of personal pensions have a set age at which you can withdraw them – but this is rarely before 55 years of age. It’s important to remember that any tax deductions will be taken by the pension provider before you can withdraw any money. Take note, however, that there are circumstances by which you might not be able to withdraw cash; click here to read more.

If you’re over 80 years of age and have a small amount of State Pension, or none at all, you do have the option to apply for an over 80 pension. This is a scheme offered by the government, in which they provide a weekly payment – but is only offered to those who reached pensionable age before 6^th April 2016.

Whether you opt to start saving for your pension at a younger age, or have reached retirement age and have little put away, there are always options to suit – so don’t worry if your financial situation sounds a lot like the latter. The right pension plan differs for everyone, and depends on what stage you’re at in your life, how much you’ve saved, your working situation and your current finances. For more advice, visit the gov.uk website here.