There are two main types: a defined benefit and a defined contribution pension scheme.

The other type of scheme is a defined contribution scheme or DC scheme. In this type of arrangement, you will normally be expected to contribute as will your employer. This is suitable for the self-employed. Payments are invested to build up a pot which will then fund your retirement.

A defined benefit scheme (commonly known as final salary or DB Scheme) is where your employer promises to give you an income in retirement based upon the number of years you have worked for them and your salary. It may be non-contributory, or you may be required to pay into it.

In retirement, your outgoings are likely to be lower. For example, most retirees will have paid off their mortgage and their children will be financially independent. A general rule of thumb is that someone under the age of 40 would need 50% of their current net salary to have a good standard of living in retirement.

An easier target to focus on might be, 2/3rds of your net final a salary.

You should also think about the state pension. Under current rules this could be worth £ 9110 per year depending on your NI record.

You can check your State Pension and when you might receive it here https://www.gov.uk/check-state-pension

The amount you need to save depends on the size of the pension pot that you want, it also depends on your age.

For example, putting 10% of your earnings towards your pension is fine if you are in your 20’s but this may have increased to 20-25% if you leave it until you are in your 40’s to get the same level of income.

For example if you are in your 30’s you should look at a percentage contribution of half your age or 15%.

It all depends on your circumstances and how much income you think you will need when you stop work but essentially you should contribute as much as you can afford.

None of us know what the future holds but it makes sense to meet with an independent financial adviser to sense check your current financial position and plan for the future.

Speaking to a knowledgeable and experienced adviser about your retirement plans will help you get a clear view of your current situation and any changes that need to be made, so that your money works as hard as it can.

That is the reason for planning with a financial adviser. Almost all of us will face change through our lives either as a result of our own choice or other factors. Your adviser will work with you as these changes happen so that you can keep your retirement plans on track.

The pandemic is causing many people to reconsider their retirement plans and lockdown is giving many others the time to look more closely at their savings and outgoings. In short people are looking at various scenarios. Do I need to work for longer? Can I go part time or take early retirement? The best is to work with a financial adviser who will help you to understand and explain your options, so you can make an informed decision.