Personal Pensions

Personal pensions are pensions that you arrange yourself. They are sometimes known as defined contribution or money purchase pensions. You will usually get a pension that is based on how much was paid in.

Some employers offer personal pensions as workplace pensions.

The money you pay into a personal pension is put into investments (such as shares) by the pension provider. The money you will get from a personal pension usually depends on:

  • how much has been paid in 

  • how the fund’s investments have performed - they can go up or down 

  • how you decide to take your money 

Types of personal pension 

There are different types of personal pension. They include:  

You should check that your provider is registered with the Financial Conduct Authority (FCA), or the Pensions Regulator if it is a stakeholder pension. 

Paying into a personal pension

You can either make regular or individual lump sum payments to a pension provider. They will send you annual statements, telling you how much your fund is worth. 

You usually get tax relief on money you pay into a pension. Check with your provider that your pension scheme is registered with HM Revenue and Customs (HMRC) - if it is not registered, you won’t get tax relief. 

See also: 

For further information on personal pensions, see GOV.UK's website.