Stakeholder and Personal Pensions
These are available from insurance companies, banks and building societies, and are usually considered appropriate for those who wish to save more modest sums, or are happy with the relatively limited fund ranges available from these providers.
A personal pension plan is a tax-efficient retirement savings scheme available to anyone under 75.
There are many different ways of making contributions, from regular monthly payments to a single lump sum.
With your funds that you have accrued, it is usual for an annuity to be purchased at your chosen retirement age which will give you a regular income for the rest of your life. There are alternatives to annuities, however, and these would need to be discussed with a qualified adviser.
A proportion of your fund can also be taken as a tax-free cash payment when you retire.
Should you die before you retire, the fund will be paid out in benefits to your family or other beneficiaries.
