If you are saving in a pension through your workplace or privately, then nowadays you are most likely to be doing so via a personal pension1. There, that was easy…
Look behind the scenes, though, and you will find that the different types of personal pension work in very different ways, even if the basic principles remain the same:
Personal pension principles
How personal pensions differ
So what are the differences between the different types of personal pension, then? These can range from the types of investments they allow, to fundamental differences in the way your pension’s growth is calculated. If you have a with-profits pension, for example, then your pension provider has discretion on how much growth they will add to your pension in a given year’. Most personal pensions are a bit more straightforward though.
Many company pensions are also personal pensions, as are all auto-enrolment pensions. In fact it is probably easier to tell you which pensions are not personal pensions; Final salary pensions and the state pension are not personal pensions, and that’s about it.
To find out more about the different types of personal pension, follow the links below. Of course if you already know which type you have, you can just jump straight to it.
Types of final personal pension
No matter what sort of personal pension you have, you are protected by a host of rules and regulations that are overseen by the Financial Conduct Authority (FCA), and this means that you have access to the Financial Ombudsman service. This protection is one of the many benefits of investing for your future in a personal pension.