Pensions are often called the most complex personal finance subject.
A pension is a way of saving money to ensure a comfortable retirement. It can have major tax benefits.
There are three main types of pensions:
An individual can save money for his retirement by giving it to an insurance company who invests it. This investing should increase its value significantly over time. To encourage the individual to save there are certain tax benefits. After retirement the fund is normally used to buy a guaranteed income - usually for life.
Much the same as personal pensions except they're organised by the pension saver's employer. (So they're not available to the self employed or those whose employers don't provide one).
There are different contribution limits to personal pensions.
The State pension is very complex and doesn't pay very much. There's more detail in the section on the Social Security.
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