The most important financial decisions youre likely to make in your life are those concerning your retirement. To have a secure future with a comfortable standard of living after youve stopped working, youll need to plan your finances carefully.

Pensions are becoming more and more important as people now live longer into their retirement. Lifestyles have also changed people often take out mortgages later in life than they used to, meaning that they may still have a mortgage to repay when they stop working. And as people are experiencing better health and longer retirements, they want to have a reasonable disposable income in order to enjoy more leisure activities in their later years.

This is the first of two guides outlining the fundamentals of pensions.

Itll help you understand more about state pensions and how they are calculated. The second guide focuses on private pension schemes. These articles do not constitute financial advice and should only be used as an introductory informational guide to pensions. For advice on how to plan your finances for your future, seek professional advice from an independent financial advisor.

Definition

First, back to basics what is a pension? Its a regular source of tax-free income for you to live on when you retire. As contributions towards your pension fund during your working life also receive tax relief, its a more tax-efficient than other methods of saving.

The government department responsible for managing and administering state pensions and other pensions related benefits is The Pension Service, which is part of the Department of Work and Pensions.

State pension

The government provides a state pension, which can be claimed by men over the age of 65 and women over the age of 60 (although this will increase to 65 in line with the male pension age by 2020).

Not everyone qualifies for a state pension, and even those who do will receive different incomes depending on their working history.

Entitlement is calculated according to the number of national insurance contributions (NICs) you (or your partner/spouse) have paid, which are converted into qualifying years. Youll need to have worked and paid contributions for around 90% of your adult working life in order to receive the full state pension. If youve been out of work for long periods in order to bring up a family or look after someone, youll be compensated for missing NICs through Home Responsibilities Protection. If youve been out of work for other reasons and have been claiming benefits such as jobseekers allowance, or income support, the government will have paid your NICs on your behalf for the period(s) in which you claimed benefit. The minimum you need to get the basic state pension is 25% of the qualifying years. If you have anywhere between the minimum and maximum amount of qualifying years, the amount you receive in your state pension will be adjusted in relation to how many qualifying years you have, so the more you have, the better. Those who have less than 25% of qualifying years wont be able to claim any state pension at all, although there are other government pension benefits to assist those on low incomes in retirement, such as pension credits or the Over 80 pension.

Additional state pension schemes

In addition to the basic state pension, the government has a top-up scheme to enable people to increase the amount of pension income they receive.

SERPS (State Earnings-Related Pension Scheme)

Until April 2002, SERPS was the governments second pension scheme, which allowed anyone earning more than £75 per week to make additional NICs. The level of NICs paid was earnings-related. However, the government deemed SERPS unfair on people with low incomes and those with big gaps in their employment history, so it was crapped and replaced with the Second State Pension in 2002 with the aim of allowing everyone to save more for their retirement.

SERPS gave the option of contracting out, which could be done for one of two reasons: in order not to pay the additional NICs, or to put the additional NICs towards a private pension fund.

Second State Pension

People who were paying into SERPS will now be paying into the second state pension and may therefore receive their additional state pension from two different sources when they retire.

The Second State Pension is still linked to earnings. However, its calculated in a way that provides better support to those on low incomes, or people who dont have constant work because of illness or disability. In these cases, the government tops up their credits to a flat rate of £12,100, so they will receive NICs as if they had earned an annual salary up to this amount.

As with SERPS, its possible to contract out of the Second State Pension, either to stop paying the additional NICs or to put them towards your own pension fund.

Finding out how much your state benefits are worth

To help you plan your savings towards your retirement, the government offers state pension forecasts to let you see how much youll be likely to receive as retirement income. Visit the Government Pensions Service website for more information (http://www.thepensionservice.gov.uk).

Benedict Rohan works as a freelance finance writer. Commercial Mortgage, Homeowner Loans, Remortgages

Getting in shape is much easier when you have the appropriate sports apparel to wear. With so many online resources, you can now find almost any type of clothing for fitness and exercise, running, playing sports games, etc.

Many of these items can be found online at a sports shopping mall in a variety of brand names such as NBA, NFL, NASCAR and NCAA, and at a reasonable price. Here's a quick guide to sports apparel, and how to choose the clothing and accessories that are right for you.

Apparel for Playing Sports (Sports Jerseys-Apparel, etc.)

When ordering items such as sports jerseys or other apparel for yourself or your team, keep in mind that the fit should be comfortable and the materials should be flexible. During any active game such as football, basketball, soccer, hockey, baseball, etc., there will be lots of arm and leg movement. Be sure to order the appropriate sizes and allow for a little moving room. Don't order items too big because the clothing could be a hindrance if it's too baggy. Spandex materials are usually popular choices for these types of sports.

Track and Running Shoes

If you're involved in track at school or in the professional realm, the main focus should be on your running shoes. Choose shoes that fit snug, but comfortably. The shoes should not slide on your heel, nor should they hurt your toes after wearing them for an hour or two. Be sure the shoes provide adequate support for your heels and arches. Also, buy running shoes that feel lightweight on your feet while running. Check to make sure the shoes have good treads on the bottom. Your running shoes should be a help, not a hindrance.

Fitness Training and Gym Workouts

At the gym, or during fitness training, buy sports clothing according to the type of exercises you will perform. For instance, wear pants that fit snugly around the legs if doing leg exercises, especially on an exercise bike or similar equipment. Loose-fitting pants could get caught in the machinery and cause injury.

For aerobic-style fitness training, wear leotards with leggings, bike shorts and a jog top. Or, wear a snug-fitting t-shirt with boxer-style shorts. Don't wear clothing that's baggy, as it will hinder your body's movement. For shoes, wear aerobic shoes if possible, but avoid running shoes with heavy treads.

Sports Swimwear

If swimming in competitions, choose a bathing suit that promotes speed and smooth swimming. There are special types of swimsuits that have "vertical line" designs in the material to channel water away from the body. Competition swimwear should be slick, comfortable, and allow for easy body movement.

To find these types of unique sportswear items used to be difficult - especially for those living in a small town with limited retailers. But nowadays, you can shop for all types of sports clothing and fitness apparel from your own home computer any time of the day or week.

Online sports shopping malls offer all types of sports clothing, fitness wear, athletic supplies, sporting goods-sports equipment, sports memorabilia, and more. And, you can usually get a great price for these items online. Use the tips above to dress for sports success!

Chris Robertson is a published author of Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource web site at: http://www.majon.com