What is a personal pension plan?
Quite simply, a personal pension is a tax efficient long term savings plan designed to provide you with a tax free lump sum and income on retirement, allowing you to enjoy your later years in life.
They are subject to the same tax regime as all registered pension schemes.
Why contribute to a pension?
In terms of building a pot of money over the long term for your retirement needs then pensions have substantially better tax reliefs over other tax efficient savings plans such as ISAs. ISAs do not qualify for tax relief on the amount that you contribute, however, the capital can be accessed at any time, and so are useful for shorter term capital goals.