A pension is simply a way of putting money aside for when you retire. The money you put in is invested and builds up in a pot, so you can access it later on in life. When you're able to take money from your pension pot, the first 25% will usually be tax-free with the remainder being taxed as income.
A pension is tax-efficient and you’ll receive tax relief on the money you put into your plan. This will help reduce the amount of tax you pay and help you boost your retirement savings for the future.
Just like any other investments, the value of your pot can go down as well as up so you might get back less than you put in. You should keep track of how your pension is performing and make changes to suit you.
Tax rules can change and the impact of taxation (and any tax relief) depends on your circumstances and may be subject to change in the future.
We always recommend you get financial advice to help you make decisions about your pension savings.