With the help of Slater Financial I can relax safe in the knowledge that my savings are working hard for me.

Julie Carter

Which Type of Pension is Right for Me?

June 2, 2016

Your pension should not only provide the funds to live life comfortably after retirement, but also suit your financial circumstances now. As a result there are a wide range of pension options for you to choose from, a fact that makes finding and selecting a pension product that suits you particularly perplexing!

Here we take a closer look at the most popular pension options around so you can discover a plan and effectively save for the future.

Defined contribution and benefit schemes

Defined contribution schemes are the most common type of pension product in the UK. This pension type helps you build your retirement fund via your contributions, which, if the scheme is provided by your employer, are deducted from your wages from month to month. Your employer will also make a contribution on your behalf.

Personal pensions

The personal pension is another defined contribution option that is worth exploring. Instead of your contributions being deducted from your salary by your employer, it is up to you to find and choose a provider, and make the necessary arrangements for your contributions to be paid. Your pension pot will also be bolstered by certain tax reliefs, which are claimed by your personal pension provider and added to your fund.


SIPPs or self-invested personal pensions are known as pension wrappers and, whilst not for everyone, offer a number of advantages for individual savers.

SIPPs pay your contributions into your own investments, which can be selected as you see fit, unlike personal pension provisions that enter a pooled fund. SIPPs do have higher charges but if invested wisely in accordance with the latest independent financial advice could reap bigger rewards.

Stakeholder pensions

Stakeholder pensions are suitable for many individuals thanks to their low and flexible contributions, restricted charges and charge-free transfers. Whilst as part of the stakeholder pension scheme you must make regular minimum contributions, the use of default funds mean you can make smart financial decisions without any investment experience.

Other options

There are many more pension provisions that you can, and should, explore when reviewing your retirement saving options.

NEST pensions, multi-employer pension schemes and self-employed pension provisions all provide plenty of food for thought. You don’t have to make decisions about your pension alone however. We provide independent financial advice to clients throughout Buxton so whether you are close to retirement or looking ahead, contact us today.

*This article does not constitute financial advice. Slater financial strongly advises you to seek professional advice before making any financial decisions.*