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Category: Pensions
Your pension contributions attract tax relief and can be made in various ways, either regularly, by lump sum or by a combination of both.
On retirement, up to 25% of your pension fund value can be taken as a tax-free cash lump sum. The remainder of the fund must be used to buy an annuity. (An annuity provides a guaranteed income for life in return for a lump sum investment.)
Most contributions are invested on behalf of the saver by a specialist organisation and are invested in the financial markets in various ways.
Find the best pension for you - Compare pensions.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
