The value of investments can fall as well as rise, and you may not get back the full amount you invest. Eligibility criteria, fees and charges apply.
What is a pension?
A long-term savings scheme to help grow your money for later in life. You can take benefits from your pension any time after you turn 55 (which is changing to 57 in 2028). While many see them as a way to fund retirement, you don’t actually have to be retired to access your pension.
What are the benefits?
A personal pension is, quite simply, one of the most tax-efficient ways to put money away for your future. The government wants us all to save for tomorrow so we have what we need as we get older, so they provide generous tax relief on your pension contributions.
Tax reliefs referred to are those applying under current legislation which may change. The availability and value of any tax reliefs will depend on your individual circumstances. You should continue to hold cash for any short-term needs.
Workplace pension
The scheme an organisation’s employees are automatically enrolled in at work. A percentage of your pay goes into the scheme each payday, and your employer usually contributes too.
Defined benefit pension
Another type of workplace pension, sometimes called a ‘final salary’ pension. This one pays an income when you retire based on your salary and how long you worked for the business, instead of the amount you contribute.
State pension
Regular income from the government once you reach State Pension age. That age varies, but you can check when you’d be eligible online.