Website of the UK government

Types of pension

There are currently three main types of pension: State, personal, and company (or 'occupational').

State Pension

The amount of basic State Pension you'll receive will depend on the amount of National Insurance contributions you've paid or are treated as having paid. Depending on your individual circumstances, you may also be entitled to additional State Pension.

The State Pension is payable from State Pension age – 65 for men, 60 for women born on or before 5 April 1950 (this will increase for women born after 5 April 1950 from 60 to 65 between 2010 and 2020) – but you can put off drawing it for up to five years.

• Understanding the basic State Pension
• Understanding the additional State Pension

Company pensions

Company pensions are set up by employers to provide pensions for their employees on retirement. If you are able to join one, it's worth considering as most people will be better off in retirement than if they had not joined.

• Understanding company pensions

Personal pensions

Personal pensions are available from banks, building societies and life insurance companies, who invest your savings on your behalf.

Under HM Revenue & Customs rules you can start taking your pension from age 50 (increasing to 55 by 2010) and to take part of your pension fund as a tax-free lump sum.

In April 2001, the government introduced 'stakeholder pensions', a new type of personal pension scheme designed to be secure, flexible and good value for money.

• Understanding personal pensions
• Learn about stakeholder pensions Opens new window
• Check if a stakeholder pension would suit you Opens new window

Tax relief on personal and company pensions

The government encourages you to save towards your pension by giving 'tax relief' on money you put into personal and company pensions schemes up to certain limits. In practice this means that money you would have paid in tax is used towards your pension pot instead.

If you're not a taxpayer you can still get tax relief on your (or someone else's) contributions to your personal pension, up to a certain limit.

• Tax relief on pensions - the basics
• Tax advantages of personal pensions
• Pension rules from April 2006

Getting help and advice on pensions

Some organisations offer free information and help with understanding pensions. However, before taking out a pension it's a good idea to talk to an authorised financial adviser.

• Getting information and help with pensions
• Choosing and using a pensions adviser

More useful links

• How to catch up if you've got little or no pension
• Early retirement - effect on your pension
• Pensions, benefits and tax when retiring abroad
• Working part-time after you retire