If you are like most people, you want to be in a position to be able to rely on more than just the state pension for your retirement.

Less than £100 per week for most people from the state pension does not go very far.

The personal pension is a good way to get a lump sum when you retire and then an income for life that allows you to live far more comfortably than on a state pension alone.

Benefits:

One of the main benefits is that you don’t have to pay capital gains tax on your Personal Pension and the government provides tax relief on your Personal Pension contributions.

For instance, whenever you pay into your Personal Pension pot, the government provides tax relief on what you have paid in. In practise this means that for every £1 pound you pay into your plan, your pension provider will be able to claim tax back from the Inland Revenue at the basic 20% rate.

You have plenty of options open to you when you retire.  Here’s a run down of some of the main ones:

You can swap your pension fund into a lifetime income by buying an annuity. This is where at least 75% of your pension fund is traded in for a regular income that is typically paid to you until death. 

Having a Personal Pension does not affect your entitlement to a state pension. Once you retire and your pensions (state and personal for instance) start to pay out to you they will be taxed jointly.

Okay so you like a particular Personal Pension plan are happy with how everything looks.

Before committing to anything you really need to ask some of these questions below before committing to anything.