How Does A Personal Pension Plan Work?
These are usually either personal pensions or stakeholder pensions. You will usually receive a pension based on how much has been paid in. The amount you receive when you retire depends not only on how much you’ve deposited, but also how your investments performed and what the fees you’ve paid are. Expats moving abroad from the UK may be able to transfer their pensions to a qualified recognized overseas pension system (QROPS).
Expats moving abroad from the UK may be able to transfer their pensions into a Qualified Recognized Overseas Pension Scheme (QROPS). Private retirement savings — often referred to as personal retirement savings — is a pension set up by an individual and not by an employer or workplace.
How do personal pensions work in the UK?
Private retirement provision works in a similar way to company pension schemes, but is set up by you rather than your employer. Basically, this means that the government adds 25% to all contributions you make to your pension pot, up to a certain limit. Your pension entitlement does not depend on the performance of the stock exchange or other investments. When you pay into your personal or stakeholder pension, you build a pension fund to receive income for your retirement.