Personal pensions
Personal pensions are all different. If you have decided that a personal pension is best for you, and career breaks are part of your plans, you should check what charges would be due if you had to stop work and could not pay any more contributions. It’s usually best if you can start paying into the same scheme when you start work again, rather than buying another one, so check whether this is possible.
Example of how a personal pension plan can help you
Meena is a computer programmer and earns around £30,000 a year. She has been contributing to a personal pension for six years and the fund is doing well. She reviews her pension scheme arrangements regularly, and has been thinking about transferring to a stakeholder pension. However, the annual charges on her current pension have reduced recently and her pension provider would charge her for leaving the scheme. So, she has decided to stay with her current personal pension scheme. She is happy with her decision, and expects to continue making regular payments into her fund.
If you want to know more about personal pensions, see Personal pensions – Your guide (PM4). See the directory for details about how you can get a copy of this guide.
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