A personal or pension is one way you might choose to save for your retirement. Personal pensions or Private Pension may be suitable for you if:

  • You are working.
  • You’re self employed or
  • You’re not working.

With a personal pension you may benefit from but not always all of the following benefits:

  • An income during retirement, which can start from age 55.
  • A pension payable to your widow, widower, civil partner or someone else who depends on you
  • A tax-free lump sum, payable if you die before retirement, to your widow, widower, civil partner or someone else who depends on you.

It is vital that you understand the benefits that your pension ,may or may not include

What is a Personal Pension

A private pension is for you to have additional some may say a necessary savings for your retirement. For this:

  • You make regular payments into your pension fund.
  • There may be tax relief on your payments.
  • An employer can make contributions to your pension fund
  • The fund is investment, can include stock shares or other investments to grow your money.
  • When you retire, you have a number of options on how to take the money in your pension pot.

Your Pension is built around an investment to grow your money, there for you will only know your final figure when you come to retire. However with wealth planning you can affect the outcome. You could end up with less money than you expect, by then it will be too late to change

Types of Pension?

  • There are Stakeholder Pensions
  • Self-invested Personal pensions (SIPPs)

Types of Investment?

  • Cash
  • Bonds
  • Property
  • Equities

When the pension rules were changed, greater responsibility has been passed to you to invest your money in a pension that suits your specific needs. Without having your pension explained to you with simpler language, it may be difficult to have good understanding of what is happening with your investment and what will be the future outcome of your pension.

Before deciding how to invest your contributions, you should always take advice from an independent financial adviser specialising in pensions.

You should always take advice from an independent financial adviser who can explain different levels of risk and help you decide what’s best for you.