Personal Pensions
Personal Pensions are private individual plans that you can pay into yourself. Your employer can also pay into your plan but they might prefer you to join their Group Personal Pension if they have one.
Even if you join your employer's plan you can still take out your own Personal Pension as well.
You decide how much you want to contribute. After receiving and reading through a quotation and key features you complete an application form with a pension provider. Your contribution is invested every month however you can also invest lump sums each year.
You should review your Personal Pension contribution regularly (we suggest once a year) At retirement (any age after 55 although this will change to 50 in 2010) you take your benefits. A tax free cash sum is available up to 25% of the fund you have built up.
The remainder has to buy you, and(optionally), in the event of your death, your widow/widower, a pension for life. This is done by buying an Annuity or applying Unsecured Pension/Pension Drawdown. At this stage you will probably need advice from an IFA or a specialist annuity provider.
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