Individual or Personal Pensions
It is also possible for an individual to make contributions under an arrangement they themselves make with a provider (such as an insurance company). Similar tax advantages will usually be available as for occupational schemes. Contributions are typically invested during an individual's working life, and then used to purchase a pension at or following retirement. Various names are given to different types of individual arrangement, but they are not fundamentally different in nature. The generic term personal pension is used to refer to arrangements established since the rules were liberalised in the 1980s (earlier arrangements are usually called retirement annuity contracts), but can be subdivided into other types (such as the Self-invested personal pension, where the member is allowed to direct what their contributions should be invested in).
Read more about this topic: Pensions In The United Kingdom
Famous quotes containing the words individual, personal and/or pensions:
“The machine is impersonal, it takes the pride away from a piece of work, the individual merits and defects that go along with all work that is not done by a machine—which is to say, its little bit of humanity.”
—Friedrich Nietzsche (1844–1900)
“If any personal description of me is thought desirable, it may be said, I am, in height, six feet, four inches, nearly; lean in flesh, weighing, on an average, one hundred and eighty pounds; dark complexion, with course black hair, and grey eyes—no other marks or brands recollected.”
—Abraham Lincoln (1809–1865)
“Many old people receive pensions for no other reason, it seems to me, but as a compensation for having lived a long time ago.”
—Henry David Thoreau (1817–1862)