Compare Top Private Pension Providers, Accounts & Deals

Unlike a company or state pension, a private pension is something you set up yourself to provide an income in retirement. A private pension is run by a company to whom you pay fees to invest the money on your behalf. A private pension is typically money purchase or defined contribution which means you carry the investment risk, and your total fund could go down as well as up. Contributions to a private pension are entitled to receive tax relief. The amount of control you have over your pension investments will depend on the type of private pension you set up.

Usually contributions come from you and or your employer, but anyone can pay into your fund and you can pay into anyone else’s. For example, you can pay into your spouse’s, while grandparents might choose to pay into their grandchildren’s pensions. It does not matter if you are employed, self-employed or not working, you can still pay into a pension either regularly or with a lump sum.

All pension funds charge an annual management charge (AMC). This varies across providers and products, but can be as high as 2% or as low as a handful of basis points. It is important to understand the fees you are paying as these will eat into your final retirement fund. Other fees might include platform charges which cover some of the fund management costs. You may also be charged a fee to leave the fund or even to make contributions. Make sure you read the small print and shop around.

You can receive tax relief on contributions of up to £40,000 a year. These can come from your or your employer. For those already receiving an income from the pension pot, annual contributions are limited to £4,000