In the UK there are many places you can save money for your future. From ISAs, regular savings accounts, to shares and bonds. However, when it comes to saving for retirement there is one place that has some pretty great benefits. This is your pension fund. A pension fund is simply a pot of money both you and your employer can put money into, which you can receive tax relief on. Here are the four key benefits of saving into a pension fund.
1. Tax relief
2. Compound interest
3. Employer contributions
4. Flexible access
Almost all pensions allow you to take some of your money as tax-free cash. In many instances, you can vary your income year by year (personal pensions). The remaining money remains invested with the opportunity to grow. If you prefer a fixed guaranteed income, an annuity may be suitable.