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Pensions

Saving for your retirement can seem like a daunting prospect. There are numerous options and deciding on the best pension plan for you is important. What types of personal pension plans are there?

With profits: A with profits pension is based on offering a minimum pension but then topping that up with 'bonuses' over the years. The plan is administered on your behalf by an 'actuary' who attempts to provide a steady level of returns over the years (rather than surges and slumps).

Unit-linked: Unit-linked plans are different in that they do not usually make any guarantee about the final pension sum that you will receive. These types of plans will increase (or decrease) in value based on how well the investments within the plan actually perform.

We also have some specific information on stakeholder pensions available.

The State Pension

We tend to think in terms of private pension schemes when discussing personal finances, but the state pension could also play an important role in your retirement planning. Our overview of the state pension (and the role of the Additional State Pension) gives a useful insight into the scheme.