Beginners' guide to pensions and retirement

On your own:

Individual Pensions

If your employer doesn't offer a pension scheme, or you fancy going it alone, then an individual pension can allow you to save for your retirement. This is basically your own pension pot that will continue regardless of where you are working. You can even pay into an individual pension if you're not working, up to certain limits.

Individual pensions can be split into three types:

1.Stakeholder Pensions

2. Personal Pensions Schemes

3. SIPPs

 

Stakeholder Pensions must meet a number of Government requirements.

These are:

• A low minimum investment - as little as £20
• Charges capped at 1.5% of the fund each year for the first 10 years, 1% a year thereafter, and
• The flexibility to stop, start and change contributions without penalty.

Because they have to be low cost, you may find that the number of funds you can invest in is more limited than
a non-stakeholder personal pension plan.