Personal pension

Personal pensions are retirement savings plans which are taken out by a person in their own right and into which they pay regular contributions during their working life.

These contributions are managed by a pension provider, such as an insurance firm or investment company, and the money is invested in assets such as shares, bonds or funds and earns interest over time. The total contributions, and interest earned on top, are then freed up and given to the holder of the pension plan upon their retirement.

This money can then be used to buy an annuity, which will provide a regular income to the person who took out the pension during their retirement. Up to 25% of the money in the pot can be taken as a lump sum.

Like all pension schemes, you do not pay tax on the money you put into a pension plan. For every £78 paid into a personal pension plan, the government effectively gives you £22.

Personal pension plans are more flexible than occupational schemes or stakeholder pensions because, in some cases, you have a say in where the money is invested.

	Personal pension contributions fall by £2billion in recession New research from the Office for National Statistics (ONS) reveals that less people are saving for their pension as a result of increased pressure on their finances in the recession.
	Santander launches 10-day personal loan sale Santander has cut the rate on personal loans between £15,001 and £20,000 to 6.8 per cent from 7.6 per cent, but only until midnight August 28th.
	Tesco Bank cuts rates on personal loans of £15,001 – £25,000 Tesoc Bank has cut the rate on personal loans between £15,001 and £25,000 to just 6.9 per cent.
	Skipton BS launch mortgage partnership with Personal Touch The Skipton Building Society has launched a two-year fixed rate mortgage deal for 80% LTV borrowers at 2.79% in partnership with Personal Touch Financial Services.
	Tesco Bank cuts personal loan rates Tesco Bank has cut personal loan rates across three sectors of the market raising its position in the best-buy tables.