A pension is just a way of saving money to significantly improve your chances of enjoying a stress-free retirement.

It is typically viewed as the best type of retirement plan for most people. Unless you are fortunate enough to be really wealthy, it is extremely important to save appropriately for your latter years, particularly as the state pension scheme usually isn’t enough to support your lifestyle.

Even though there are other methods of saving to make your retirement comfortable, they are usually riskier. In the UK, the tax benefits of pensions make them even more attractive.

The Inland Revenue provides a great incentive for you to save money for retirement. For instance, if you put your money into a personal pension scheme, you will not be taxed on any of it.
 
What is more, if you have already been taxed on the amount you are placing into a private pension, the government will take the tax you already paid on the money and move it into your private pension plan.