Pension

A pension is a long-term savings arrangement designed to provide income in retirement, often with tax advantages..

1 min read Planning for Retirement

What it means

A pension is a long-term savings arrangement designed to provide income in retirement, often with tax advantages.

Example

You and your employer contribute to a workplace pension throughout your career to build retirement savings.

Why it matters

Understanding pensions is essential for long-term financial security.

Most pensions cannot normally be accessed until the minimum pension age except in limited circumstances.

Why should I start a pension early?

Starting earlier gives investments more time to grow through compound returns.

Related terms

This term comes up a lot when you're learning to invest.

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