Making sense of pensions

If you don't know much about pensions and retirement, let us help. We'll explain the basics and give you the information you need to plan for your financial future.

A pension is simply a way of saving for your retirement in a tax-efficient way. The Government is keen for you to save into a pension, so you'll normally get tax relief on the contributions you make.

If the basic rate of tax is 20%, for every £80 you pay into your plan each month, the Government will automatically top up your pension with an additional £20.

Your tax relief may depend on your main place of residence in the UK as advised by HMRC for each tax year. If you are a Scottish or Welsh taxpayer, the relief you will be entitled to will be at the Scottish or Welsh rate of income tax as applicable.

If you pay tax on some of your income at a higher or additional rate, you can claim additional tax relief via your self-assessment tax return.

With our range of pension calculators, you can get an idea of how much to put away each month, work out how much you could save in tax relief when paying into a pension, and more.

• Pensions Calculators
• A guide to retirement planning

For more information you should ask your financial adviser, who may make a charge.

Tax treatment will depend upon your individual circumstances. Your circumstances and tax rules may change.

Pensions are a long-term investment. The retirement benefits you receive from your pension plan will depend on a number of factors including the value of your plan when you decide to take your benefits which isn't guaranteed, and can go down as well as up. The value of your plan could fall below the amount(s) paid in.