PENSIONS
The Government provides tax incentives to encourage you to put money aside for your retirement. You or your employer can get back tax, within certain limits, when you contribute to a pension scheme.
Employer run pension schemesIt may be that you are part of a pension scheme which is run by your employer. If so, the money will be managed by professionals who may invest in investment funds and/or directly in cash, bonds, equities and other assets.
Personal pensions
If you are not part of a company scheme, you may want to set up your own personal pension. You can buy a personal pension from specialist providers such as banks, building societies and life assurance companies. These schems will offer a limited number of funds. A SIPP (Self-invested Personal Pension) is a type of pension, which offers you complete control over your assets. You choose where to invest your money and you have an ulimited choice of assets and funds.
There are restrictions on when and how you can withdraw money once it is in a pension fund. For more details about contributing to a pension please contact The Pensions Advisory Service (TPAS).