Individual or Personal Pensions
It is also possible for an individual to make contributions under an arrangement they themselves make with a provider (such as an insurance company). Similar tax advantages will usually be available as for occupational schemes. Contributions are typically invested during an individual's working life, and then used to purchase a pension at or following retirement. Various names are given to different types of individual arrangement, but they are not fundamentally different in nature. The generic term personal pension is used to refer to arrangements established since the rules were liberalised in the 1980s (earlier arrangements are usually called retirement annuity contracts), but can be subdivided into other types (such as the Self-invested personal pension, where the member is allowed to direct what their contributions should be invested in).
Read more about this topic: Pensions In The United Kingdom
Other articles related to "individual or personal pensions, personal pensions, pension, personal pension":
... Group personal pensions are another pension arrangement that are personal pensions, but are linked to an employer ... A group personal pension plan (GPPP) can be established by an employer as a way of providing all of its employees with access to a pension plan run by a single provider ... to negotiate favourable terms with the provider, thus reducing the cost of pension provision to the employees ...
Famous quotes containing the words pensions, individual and/or personal:
“Many old people receive pensions for no other reason, it seems to me, but as a compensation for having lived a long time ago.”
—Henry David Thoreau (18171862)
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—Adele Faber (20th century)