We have over nine million customers in the UK for our life assurance, pensions, investments and general insurance plans.
Pensions have the reputation of being confusing, but they needn’t be. Here we give a brief summary of what a pension is and why it might be a good idea for you.
A pension is a long-term investment that aims to provide you with an income in later life.
There are a number of different pensions available. The State currently provides a basic income when you reach State retirement age, this age is determined by when you were born. With people living longer this age has risen over the years and will probably continue to rise, so many people choose to take out an additional pension. Your employer may provide a company pension (also known as occupational or workplace pension) and if they do it's a good idea to join. You can choose to have a personal pension (known as a defined contribution pension) where you can build up a pot for you to access usually after age 55.
With some company and personal pensions, you normally get to choose where your money’s invested. For our Stakeholder Pension Plan for example, our funds made clear page explains where you can invest your money in more detail.
The earlier you start saving into a pension, the better chance you'll have of achieving the lifestyle you want in later life. By the time you want to take your pension benefits you may want to work less or retire.
Our cost of delay page shows how putting off starting a pension, even by a few years, could affect your retirement plans.
Well, one significant advantage is the tax relief. To encourage people to save for their retirement, the Government offers the following:
The law and tax rates may change in the future, and the value of tax relief depends on your individual circumstances.
From 6 April 2015 the Government introduced different ways for everyone aged 55 and over to access their defined contribution pension pots. You can find out more information on our New Pension Rules page.
Our stakeholder pension is a simple, straightforward way to save for your retirement.
Choosing the right pension can be difficult, which is why we've created this jargon buster to explain some of the most commonly used words and terms. We've also included some new terms you might see used following the Government's Pension Reform from April 2015. The tax information we provide is based on our understanding of current tax law and could change.
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