Main Advantages to a Pension
Saving for your retirement through a pension scheme has certain advantages over saving in other ways, including:
· tax relief on your contributions;
· Investment growth which is free of tax; and
· The ability to take some of your benefits at retirement as a tax free cash lump sum.
Main Disadvantages to a Pension
You cannot take out the money you put into your pension and use it for another purposes until you reach 55. The purpose of your Pension is to give you an income in retirement. It can only be transferred to another pension scheme, or used to provide your benefits at retirement or death.