Personal pensions
A personal pension is one way of making regular savings for your retirement. You can buy personal pensions from financial organisations such as insurance companies, banks, investment companies and building societies. You usually pay into the personal pension every month. The pension provider invests your money to provide a lump sum, and you can use this money to pay for a pension when you reach your retirement age. But you may also have to pay charges to your pension scheme provider.
What if I want a career break?
If you think you might want to take a career break, you should think about the option of a stakeholder pension before you start a personal pension.
There are many different types of personal pensions. If you decide that a personal pension is best for you, and career breaks are part of your plan, you should make sure that your personal pension scheme does not charge you when you stop work. It’s usually best if the scheme allows you to start paying into the same scheme when you start work again. This will be cheaper for you than taking out another one as this would involve paying two lots of administration charges.
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