What are the different types of Pension?
You could end up with different types of pension depending on whether you’re employed or self-employed, and the pensions available from a particular employer.
- The State Pension
The State Pension is from the government and the amount you get is based on your National Insurance contributions. If you qualify for the full State Pension, the weekly rate is £230.25, or about £12,005 a year. For more information on the State Pension, see GOV UK state Pensions.
- Workplace pensions
These are pensions provided by the firm you work for, so they’re also known as occupational or company pensions. Employers must now enrol their staff into a workplace pension if they are older than 22, earn more than £10k, and usually work in the UK – this is known as auto-enrolment.
- Personal pensions
If you don’t have a workplace pension, for example, if you’re self-employed, a personal pension can be a good way to save for retirement. There are two types of personal pension: stakeholder pensions and self-invested personal pensions.