Which pensions do you have?
There are a few different types of pensions in the UK. But the main ones you need to know about are workplace pensions, personal pensions and the state pension.
When it comes to understanding which pensions you might have, the answer could be all of them.
But for each type of pension, how they work, what you get and when you get it, is different.
Before diving in it’s important to know that pension and tax rules can change and depend on your personal circumstances. So before making any decisions, check how anything mentioned below will apply to you.
Main types of pension
Here’s a brief summary of the main pension types, breaking down how they work, what you get and when you get it.
If you need to review the basics, check our guide on what is a pension.
Personal pension - a pension pot you build yourself
You are in charge of setting up a personal pension and adding money to it. The government tops up your contributions, up to a certain amount, through tax relief.
The main reasons people set up personal pensions are to:
- Save more and supplement a workplace or the state pension
- Start saving for retirement if self-employed
- Combine old pensions and keep them under one roof
- Make their own investment decisions