Skip to main content

What type of pension do you have? > Personal Pension

4. Personal Pension

Personal Pensions are Defined Contribution pensions.

These are particularly useful if you haven’t got a workplace pension.

Your pension provider will give you a range of funds to choose from. This is where it pays to get financial advice, as selecting the correct funds (with the appropriate risk level) can make a big difference to long term performance contact Cambridge Pensions.

What factors determine how much you receive in your retirement;

  1. Charges taken by the pension provider
  2. How well your investments have performed
  3. How long you save for
  4. How much you contribute to your pension
  5. What your employer contributes.

You will have a range of options regarding how to take your pension from age 55 (see Taking pension income). Once again, a financial adviser can advise how to take pension income in a manner that is tax efficient and factors in objectives and needs throughout retirement contact Cambridge Pensions.

Your employer may or may not agree to contribute directly to your pension, however, this doesn’t stop you continuing to contribute yourself. Your employer might have their own workplace pension that they contribute to. There is no reason why you can’t have both pensions making contributions simultaneously.

If you defer a pension (meaning stopping making contributions) make sure you have checked whether there are additional charges to do this (deferred fees).

Lots of providers will offer you an annuity on retirement, you DO NOT have to accept this.

A Financial Adviser can help with Personal Pensions, contact Cambridge Pensions

While we keep information on the website as up to date and as accurate as possible, the information on this website does not form part of our advice process. Cambridge Pensions Ltd cannot accept any liability for any decisions made by a client or member of the general public based on any information contained on this website. The value of your investments can go down as well as up and you may get back less than has been paid in.