Pensions explained
With our help, starting a pension needn't be complicated. It’s your retirement fund and you’re in control. However, with all pensions, it’s best to start as early as you can and save hard. Our pensions are flexible and let you choose the most suitable way to invest your money so it has the chance to grow. If you make personal contributions to your pension, the taxman usually tops up your payment with tax relief at 20%. If you are a higher or additional rate taxpayer you can claim further relief at 20% or 30% through your tax return. Your employer can also make contributions to your pension.
Find out all the pension information you need, whether it’s the types of pension you’re eligible for, what suits you best or what tax benefits you could get.
See how pensions work
The pension information provided is for explanation purposes only. Investments can rise and fall and you could get back less than you invested. Please remember, tax relief on pensions may change. Its value depends on your individual circumstances.
Why start a pension now?
Starting early makes sense. Your money has more time to grow, and you will get more top-ups from the taxman.
If you start a pension early, you can pay in less each month and still match the pension of someone who starts later – or pay in the same which means you'll have more than they will, come retirement.
| Age 25 Retiring in 40 years | Age 35 Retiring in 30 years | Age 45 Retiring in 20 years |
|---|---|---|
| Age 25 Retiring in 40 years | Age 35 Retiring in 30 years | Age 45 Retiring in 20 years |
| ...and you saved £200 a month, this is how much income you'd end up with each year in retirement | ||
| £10,700 | £6,860 | £4,030 |
| The taxman would have given you: | ||
| £24,000 | £18,000 | £12,000 |
| So your pension pot would be worth: | ||
| £190,000 | £120,000 | £70,500 |
These figures are illustrations only to demonstrate potential fund growth, and the pension income you might get when you retire. We've made some assumptions: that the tax position doesn't change; that your payments remain constant; and that you'll retire at 65. We've assumed that your investments will grow at 7% per annum (you may get more or less than that) and that your annual charges will be 1%. Nothing is guaranteed.
