Pensions Made Clear

Saving for retirement is something that most of us put off for as long as we can.  But the reality is that the sooner you start paying into a pension the higher your income in retirement will be.  Being entitled to a state pension can be very useful, however, this may not be able to give you the standard of living that we all want in our retirement.

Pensions are long term investments with special tax rules – for example, you get tax relief on your contributions.

There are three main types of non-state pensions which are:

  • occupational salary-related schemes – offered by some employers
  • occupational defined contribution schemes (also called money purchase pensions) – offered by some employers
  • stakeholder pensions and personal pensions – offered by some employers, or you can start one yourself.  You may also be offered a group personal pension at work.  These are also money pensions.