A personal pension is a type of defined contribution pension. You choose which provider you want to take the pension out with and arrange for your contributions to be paid. If you haven’t got a workplace pension, getting a personal pension could be a good way of saving for retirement and even if you do it can provide additional income in retirement to ensure that you can maintain your standard of living.
A Personal Pension Plan is designed to offer a lump sum and income in retirement and can be taken out by any UK citizen under the age of 75.
A personal pension plan can be taken out even if you are not in employment and can also be provided for a spouse, partner or children (who will take over the pension when they turn 18).
The minimum age you can draw benefits from a personal pension is age 55 and there are various factors that can influence the amount of income receivable when you retire:
- The value of your pension contributions
- How your investment fund has performed
- Any charges that you may have to pay
- Current annuity rates
*The value of pension and the income they produce can fall as well as rise. You may get back less than you invested.