Benefits of a pension

Investing in a pension plan is very simple:

• You make regular payments during your working life.
• Your payments are then invested in your choice* of one or more of a range of professionally managed funds and remain invested until you retire. Charges and investment performance will affect the fund value.
• The money built up can then be used to buy a lifetime annuity (this is a product that provides you with an income until you die). Your pension income will be taxed as earned income. You may be able to take part of your pension fund as a tax-free lump sum which means you will receive a smaller pension.

Payments in a pension are flexible**. For example, you can:

• decide how much to pay,
• pay additional single payments when you have spare money,
• decide when you want to retire (subject to scheme rules).

Tax relief may alter and its value depends on your financial circumstances. Tax and legislation are likely to change in the future. The information given here is based on Standard Life's understanding of law and HM Revenue & Customs practice at date of publication.