Throughout my working life I keep hearing the words ‘you must have a Pension‘, and ‘what are you retirement plans‘ (especially at my age!). Anyway, I thought I would create a diagram to show the fundamental principles of pensions.
Although this diagram does not show every nuance of how pensions work, I think it shows the fundamental ideas.
Watch out for those ‘Management Fees‘. 1% doesn’t sound a lot, but cumulated over 20 years the ‘Fat Cats’ get pretty fat on them!