A personal pension plan is a tax efficient long term investment account that is managed for you by a life assurance company or investment firm.
Anyone who is self-employed or who earns an income but who cannot join an occupational or company pension scheme can start a personal pension plan. If you are a member of an occupational pension scheme but also earn income from another source, you may be able to contribute to a personal pension plan.
The value of benefits payable to you depends on the level of contributions paid by you, and the investment return achieved from your investments. When you retire you can take part of your pension as a tax free lump sum.
With a personal pension plan you can:
- Make single, yearly or monthly payments
- Stop, restart and change your payments at any time
- Choose where your money is invested
- Get tax relief on your payments and all investment growth is tax free
- Contribute to more than one personal pension plan.