Personal Pensions

Personal pensions are money purchase arrangements you make yourself, usually through a bank, building society or insurance company who invest the money on your behalf.  There is no additional contribution from your employer; the individual bears the risk and the level of pension is therefore uncertain. 

The problems with personal pensions:

• Employers make no contributions.
• Administrative charges can be expensive.
• A series of mis-selling scandals have illustrated the pitfalls in what can be a competitive financial services market.