What are the different types of personal pensions -
You build up a pension fund by investing your and/or your employer's pension contributions with an insurance company. Over time, your contributions build up to provide you with a pot of money that you can use to generate an income in retirement.
Stakeholder Pensions (available since April 2001)
These are low cost, flexible pensions, set up by either yourself or through an employer, where providers are restricted in what fees they can charge you. The pension is transferable between providers (at no cost) and schemes can accept smaller contributions, though you may have restricted investment options.
Personal Pension (available since 1988)
These offer more investment choice than stakeholder pensions, but sometimes come with higher charges.
Retirement Annuity Contract (available prior to 1988)
These work in much the same way as personal pensions but have both different retirement limits and tax-free lump sums.
(Free Standing) Additional Voluntary Contribution Scheme
This is used by people in occupational pensions to save additional money outside of the scheme.
Self Invested Personal Pension
This is a type of personal pension brought in to cater for sophisticated investors. The product generally has higher charges but provides access to a multitude of investment options.
Section 32 buyout plan
These were introduced to allow people to transfer their benefits out from an occupational scheme and were sometimes referred to as “pension transfer plans”. These could contain a benefit called a "guaranteed minimum pension".