Contribution to a pension scheme is highly recommended as part of your retirement plan. Contributions to a registered scheme have several tax benefits.
Most employers also match the employee’s contributions to these schemes on a monthly basis. Therefore by contributing to the pension scheme you are saving double.
Upon retirement you will receive one third of your pension as lump sum and the rest in the form of a monthly income.
However independent Retirement Investments are essential. You may have a pension fund in place with your employer but it is never enough. Statistics show that lifestyles significantly drop post retirement.
The purpose of this is to really cater for your lifestyle after you stop working. The pension fund that may be in place with your employer is never enough. Because of inflation, the cost of your lifestyle when you retire will be much higher.
Your retirement investments need to include assets that will be generating income at the time of retirement. This is what you will use to fund your lifestyle expenses then.