What is a personal pension?

I have a pension but I’m not really sure what it is, please can you explain?

Question asked by Julian Hollis
Need Pension Advice?
Call us on 02084327333
First Name
Phone
Email

Answered by Neil Adams

A pension is essentially a long-term savings plan designed to help you set aside money for later life. You usually make monthly contributions into a pension, either provided by your employer, or a standalone pension plan if you are self-employed, and you’ll receive tax relief on your contributions.

If you  belong to your company scheme, your employer will make contributions on your behalf too. Your pension savings are then invested in funds, for example, in the stock market. You should always monitor these investments, and you may be able to move your money into different funds within the pension if you want to.

When can I access my personal pension fund?

You won’t be able to access the money in your pension until you reach the age of 55. At this point, or whenever you want to after this age, you can usually take up to 25% of your pension as a tax-free lump sum. You can then use the remainder to provide you with an income, or you can make withdrawals as and when you need them.

It’s a good idea to seek professional financial advice about your pension decisions, to ensure your money works as hard as possible for you. If you would like some help please feel free to contact us and one of our pension advisers would be glad to help.

personal pension
 
retirement planning
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Start your journey today...
  Find out how a Drewberry financial adviser can help you reach your destination by making the most of your finances.
Call us on 

Frequently Asked Pensions Advice Questions

 
Is my personal pension income tax free or do I need to pay tax? If I need to pay take what tax rate do...
 
With all the changes to the pension legislation in the 2015 Budget I wanted to understand whether it...
 
I know I’ve got old private pensions from former employers with a decent fund value. Can I transfer...
 
My wife doesn’t have much of a pension and I want to make sure she is financially stable once she...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Kevin Paul
05/09/2017

Excellent service renewing our medical insurance, professional advice, good rates found and excellent professional after service, highly recommended.

Max Edgar
09/09/2017

Nadeem was brilliant. He was very patient and worked very well with me to come up with the best solution possible for my budget. Perfect solution. Thank you very much.

Aidan Smyth
11/09/2017

Dealt with me promptly and provided me with the most cost-effective option consistent with my requirements. Very pleased and thank you.

We are rated 4.9/5 based on 1129 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.93 / 5 Average
1,222 Reviews
A
Overall Rating
Really, really helpful! Stopped me from signing up with an unhelpful company, and did basically all of the legwork for me in signing up with the right one. I can't have been the most helpful client as I'm 19 and only just started looking into it last week, but he took all the questions in stride! Put up with me turning to ask my dad questions every 2 minutes as well. I was helped by 2 workers; Sam and Nick. Thank you very much to both!
L Finch
Overall Rating
Good communication and follow ups. Friendly. A thorough research for my insurance needs.
M
Overall Rating

Sam Barr-Worsfold was very helpful and provided excellent customer service. Sam discovered I was paying too much premium for my current cover. Sam recommended and helped moved to a new cover with lower premium that provided the level of cover (terms required stated in the provider's policy) I wanted. I recommend highly recommend Sam and Drewberry Insurance. Thank you Sam.
Anonymous
Overall Rating
Thorough, knowledgeable and great communication
Anonymous
Overall Rating
Went through each policy in detail and made sure I was getting the correct one for me