Personal pensions allow you to save for your retirement and have complete privacy about how much and where you invest in your personal pension plan. There is a wide choice of personal pension schemes available mainly from the major uk life insurance companies.
Personal pensions uk legislation currently let’s you retire from age 55 and take the benefits from the your personal pension, you can still continue to work as well as receive the income from your personal pension plan. The income from a personal pension scheme is taxable as earned income and the life insurance company will ensure tax is collected with personal pension management.
As with any product in financial services there are many different types of pensions and many providers that offer them. The most common is Stakeholder pensions which can accept personal contributions as well as pension transfers and for those that do not have access at work to an occupational scheme can be used in place of company pensions. With all personal pension type products when you come to retire you exchange your pension fund to purchase annuities.
There has been much research in the UK about lack of pensions saving and many people surveyed said they would use their property to help fund their retirement with equity release. Others intend to retire early and use pension release to help them fund a lifetime dream holiday. If you do not have any equity investments or retirement investments already in place them personal pensions can certainly help you reach your retirement dreams.