For the self-employed and employees who do not have access to a company pension, personal pensions remain the most common form of retirement savings vehicles. These are money purchase schemes in that your pension is based on a pension fund built up over the years. You get full tax relief on pension contributions provided you do not exceed the generous limits laid down by the Inland Revenue.
Personal pensions are very flexible and Her Majesty's Revenue & Customs (HMRC) permit you to pay up to 100% of your salary with an upper earnings level of £225,000 in 2007/2008. You can continue to contribute until you are 75.
Benefits can be taken any time from age 50 (55 from 2010) but have to be taken by age 75.
It is not necessary to purchase from your original pension provider. Manson’s can advise you of the options available between the different insurance companies and select one that suits your circumstances the best.