For those people that are not in an Employer or Group Pension, a personal pension is for an individual.
The individual chooses the pension provider and make arrangements for their contributions to be paid into their pension fund. In addition, the government also contributes, paying into your fund the tax relief on your pension contribution.
The pension fund is invested in a range of investments - Shares, Bonds, and Unit Trusts etc., The aim is to grow the fund over the years to provide an income in retirement. At retirement, after April 2015, the new rules will apply providing freedom with what you choose to do with your pension fund.
There are other types of Personal pensions to choose from including Self-Investing Personal Pension Schemes (SIPPs) and Stakeholder Pensions.
If you are considering starting a pension, we strongly advise that you seek professional advice from a fully qualified and regulated Independent Financial Advisor. Pension decisions are usually a major financial decision that requires the appropriate level of advice to make the right choice. In contrast, mistakes can be costly. To arrange for a no obligations, initial free telephone consultation click here.