A personal pension is simply a way of saving money for your future retirement.

Pensions have one very important advantage - they're incentivised by the taxman. In fact, the taxman is very generous when it comes to personal pensions, adding to your pension every time you pay money in.

Every £80 you pay in is topped up to £100, giving your savings an immediate boost of 25%. And higher rate taxpayers can get even more.

Plus, on top of the tax relief you receive each time you pay into your pension, the money you've saved grows virtually tax free over the years*.

Please remember future governments may increase or decrease the amount of tax relief you get.

*There's a tax on dividend income from UK shares which pension funds aren't able to reclaim. Please note, this information is based on our current understanding of taxation law and HM Revenue & Customs practice in the UK. The amount of tax relief you receive depends on your personal circumstances and may change.

Pensions Explained

Types of Pensions