Pension is a generic term for a savings contract that is designed to help you save for retirement. By making regular contributions to a pension, you benefit from an income when you’ve retired.
At the moment, withdrawals cannot be made until age 55 and the majority of the income taken is taxable.
There are various types of pension available to people in employment. With tax-relief on contributions and a virtually tax-free environment in which to invest, saving into a pension can be a particularly effective way of saving for retirement.