Personal pensions

Personal and stakeholder pensions are private pension funds that you arrange and pay into yourself. You’ll get tax relief on money put into a personal pension up to certain annual and lifetime limits.

Personal pensions are a type of defined contribution pension scheme. This means that what you get out at the end will depend on how much you paid in, and the performance of your pension investments.

A personal pension may suit you if:

  • You want an alternative to your workplace pension
  • You’re self-employed or don’t have access to a workplace pension

Read our guide to types of pensions for more information on what’s available.

Accessing your personal pension

You’ll have to wait until you’re at least 55 to access your personal pension.

You can normally take up to 25% as a tax-free lump sum and either purchase an annuity, or take pension drawdown. Alternatively you can withdraw from your pension pot in phases.

Since new pension freedoms were introduced in April 2015 you now have much greater flexibility when it comes to accessing your pension pot.

Read our guide to retirement income options for more information on turning your pension into an income for retirement.

Speak to a financial adviser for more information on choosing a retirement saving option to suit your needs.

Last updated: 09 June 2015