A personal pension is a type of defined contribution pension. You choose the provider and make arrangements for your contributions to be paid.
Find out more on our guide Defined contribution pensions.
As like other pension schemes, a personal pension offers a tax-efficient way to save for retirement.
The money paid into a personal pension scheme is invested to build up a pot of money for when you retire.
You get tax relief on the contributions. This means that Income Tax you would normally pay to the government goes towards your pension instead.
The money in the pot grows largely tax-free, and when you come to retire you can usually take up to 25% of your pension pot tax-free.
You can also normally access your pension pot from age 55.