Pension Schemes

Saving for retirement is a great way to ensure financial security for your future, and it has a range of tax benefits. Personal pension plans are designed to facilitate saving for retirement. The money you save is invested to ensure that your pension pot is sufficient to purchase you an annual pension on retirement. The government will pay you tax relief on the money you invest, and so for every one hundred pounds of pension fund you wish to save you need only contribute seventy eight pounds. In addition to tax relief, you are entitled to a tax-free lump sum on retirement, usually a maximum of twenty-five percent of the total value of your pension fund. There are different types of pension scheme on offer, which have individual advantages and disadvantages, and their own terms and conditions. For details of the UK Pension system see Pensions.