Learn more about pensions
Find out more about the types of pension available in the UK, and the differences between them.
What is a workplace pension?
A pension plan organised by an employer to help its employees save for later life. The employer pays in and the employee may or may not need to pay in too. They are also known as occupational or company pension plans. There are two different types of occupational pension plans: money purchase and final salary plans.
A money purchase plan is designed to build a capital sum to provide retirement benefits. Some money purchase plans are referred to as personal pensions or group personal pensions, these may be funded by an individual and also by an employer as a workplace pension. If setting up yourself, you can decide your provider and the amount of contributions payable independent of any employer. If the personal pension is a workplace pension your employer will choose the provider, set up the plan and may have conditions about the levels of contributions that are payable.
What is the State Pension?
A regular lifelong income payable by the UK government that you may qualify for once you reach State Pension age, currently age 65. In the UK, the amount you get depends on your National Insurance contribution record. The State pension age for men and women is currently 66. It’s due to rise further to 67 between 2026-28 and to 68 between 2044-46.
The State Pension age has changed over the last two decades and is reviewed at least once every five years, so could change in the future.