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Personal pensions are pensions that you arrange yourself. They鈥檙e sometimes known as defined contribution or 鈥榤oney purchase鈥� pensions. You鈥檒l usually get a pension that鈥檚 based on how much was paid in.

Some employers offer personal pensions as workplace pensions.

The money you pay into a personal pension is put into investments (such as shares) by the pension provider. The money you鈥檒l get from a personal pension usually depends on:

• how much has been paid in
• how the fund鈥檚 investments have performed - they can go up or down
• how you decide to take your money

Types of personal pension

There are different types of personal pension. They include:

• - these must meet specific government requirements, for example limits on charges
• - these allow you to control the specific investments that make up your pension fund

You should check that your provider is registered with the or the if it鈥檚 a stakeholder pension.

Paying into a personal pension

You can either make regular or individual lump sum payments to a pension provider. They will send you annual statements, telling you how much your fund is worth.

You usually get tax relief on money you pay into a pension. Check with your provider that your pension scheme is registered with HM Revenue and Customs (HMRC) - if it鈥檚 not registered, you will not get tax relief.

Citizens Advice has information about .

Paying for financial advice

You can find a financial adviser:

• on the
• from the

Most personal pensions set an age when you can start taking money from them. It鈥檚 not normally before 55. Contact your pension provider if you鈥檙e not sure when you can take your pension.

You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum. The most you can take is 拢268,275.

If you hold a protected allowance, this may increase the amount of tax-free lump sum you can take from your pensions.

You鈥檒l then have 6 months to start taking the remaining 75%, which you鈥檒l usually pay tax on.

The options you have for taking the rest of your pension pot include:

• taking all or some of it as cash
• buying a product that gives you a guaranteed income (sometimes known as an 鈥榓nnuity鈥�) for life
• investing it to get a regular, adjustable income (sometimes known as 鈥榝lexi-access drawdown鈥�)

Ask your pension provider which options they offer (they may not offer all of them). If you do not want to take any of their options, you can transfer your pension pot to a different provider.

Taxes and charges

Your pension provider will take off any tax you owe before you get money from your pension pot.

Your pension provider might charge you for withdrawing cash from your pension pot - check with them about this.

Get regular payments from an annuity

You might be able to buy an annuity from an insurance company that gives you regular payments for life. You can ask your pension provider to pay for it out of your pension pot.

The amount you get can vary. It depends on how long the insurance company expects you to live and how many years they鈥檒l have to pay you. When they calculate the amount they should take into account:

• your age and gender
• the size of your pension pot
• interest rates
• your health (sometimes)

There are different kinds of annuities. Some are for a fixed time (for example, payments for 10 years instead of your lifetime) and some continue paying your spouse or partner after you die.

You do not have to buy your annuity from your pension provider.

Invest the money in a drawdown fund

You may be able to ask your pension provider to invest your pension pot in a flexi-access drawdown fund.

From a flexi-access drawdown fund you can:

• make withdrawals
• buy a short-term annuity - this will give you regular payments for up to 5 years
• pay in - but you鈥檒l pay聽tax on contributions over the money purchase annual allowance

Keeping your capped drawdown fund

If you have a and want to keep it, your money will stay invested.

You can keep withdrawing and paying in. Your pension provider sets a maximum amount you can take out every year. This limit will be reviewed every 3 years until you turn 75, then every year after that.

Withdraw cash from your pension pot

You may be able to take cash directly from your pension pot. You could:

• withdraw your whole pension pot
• withdraw smaller cash sums
• pay in - but you鈥檒l pay聽tax on contributions over the money purchase annual allowance

Contact your pension provider first if you need help with a personal pension.

If they cannot help, you can get free and impartial information from . MoneyHelper do not provide financial advice.

Financial advice

You can if you want advice. You鈥檒l usually have to pay for their services.

If you鈥檙e over 50

has information about your pension options. If you鈥檙e over 50 you can book a free appointment to talk about your options. Pension Wise does not cover the State Pension, 鈥榝inal salary鈥� or 鈥榗areer average鈥� pensions.

State Pension

For help with your State Pension contact the Pension Service.

If you have a complaint about how your pension scheme is run, talk to your pension provider first. They have to respond within 8 weeks.

You can also contact if you鈥檙e concerned about how a pension scheme is run.

Complain about marketing

Complain to the company who you bought the pension from, such as the provider or a financial adviser.

If you鈥檙e not happy with how they deal with your complaint, contact the .

If your provider has broken the law

If you think your pension provider has broken the law, you can complain to:

• the for workplace pensions
• the for personal and stakeholder pensions

If your provider goes bust

If the pension provider was authorised by the Financial Conduct Authority and cannot pay, you might get compensation from the