SJP Learn about pensions

Pensions are one of the smartest – and tax-efficient – ways to save for your retirement. But, like most consumer products, there are many on the market to choose from. So, if you’re not sure where to begin, we’ll go through the basics. 

Pensions are designed to work over the long term, so getting started is the most important thing.  
 

How do pensions work?

Pensions are a tax-efficient way to save for your retirement. They are long-term saving plans, built up throughout your working life and for most of us, they’re our key source of income as we get older. 

Pensions are one of the most tax efficient ways to save for retirement, since you get tax relief on your eligible contributions. Which means the government will add money alongside the money you pay in.

Since pensions are designed for ‘life-after-work’, you can’t usually access your pension until at least age 55 (rising to 57 in 2028), or sometimes later depending on what pension scheme you have.


These are the key things you need to know about pensions:

What are the different types of pensions?

Learn about the different types of pensions and how they can help you reach your retirement goals.

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How much money do you need to save for your retirement?

No matter how young you are, it's important to plan for your future and the retirement lifestyle you want.

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How much can I contribute to my pension?

Paying into a pension is a smart way to invest in your future and can help you achieve a comfortable retirement. Find out more about allowances and how much you can contribute.

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How does tax relief work?

Every time you make an eligible contribution to your pension, the government does too. This form of ‘top-up’ comes in the form of tax relief.

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What is the pension allowance?

Pensions are a tax-efficient way of saving for retirement, since you get tax relief on all eligible contributions you make. Because of this there are limits on how much you can pay into a pension and still obtain the full tax benefits.

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Pension or ISA?

You may be wondering whether it is better to save into an ISA or a pension for your retirement. The short answer is that you can do both, it doesn’t need to be an ‘either/or’ choice. 

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Why get advice on your pension?

Taking financial advice on when and how to access your pension can turn a good retirement, into a great one.  Pension advice means your retirement plan is personalised to reflect your retirement plans, lifestyle, and long-term needs.

Your pension is likely to be one of your main sources of income when you stop working, so any financial decisions can have a lasting, sometimes lifechanging, impact on your financial wellbeing and security.  And like all big decisions, it’s good to have an expert in your corner. 

Even if you’ve never had a financial adviser before, this is probably the best time to do it.

Pension advice can help you:

  • Understand how much you should be saving.
  • Explore your pension options, and work out the best way to withdraw from your pension.
  • Help you make the most of your savings and investments, so they continue to grow.
  • Choose the most tax-efficient ways to access your pension.
  • Help you choose investments that suit your attitude to risk.
  • Help you avoid costly mistakes.

We’re here to help you find the right pension for you, and help you make confident decisions about your retirement planning.

Act now to discover the rewards of one-to-one financial advice and book a no obligation consultation today.

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The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise.  You may get back less than the amount invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

SJP Approved 09/09/2025