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Private Pensions

Get the retirement you want with Profile Pensions

  • Your plan will be updated regularly and you’ll get a dedicated pension adviser as soon as you sign up

Money in a safe

Why use MoneySuperMarket to get a private pension?

There are several good reasons to sign-up with Profile Pensions through MoneySuperMarket. These include…

  • Impartial advice

    We'll ask you some questions and use your answers to choose the best pension funds for you

  • Dedicated support

    You’ll have your own dedicated pension adviser and receive ongoing customer support whenever you have a query

  • Combine pension plans

    You’ll be able to bring existing plans together to make them easier to manage and give you the potential for better returns

What is a private pension?

A private or personal pension is a way to save money for your retirement. You save regular or lump sums with a pension provider and receive tax relief on top – giving your savings pot an extra boost.  

Your money will usually be invested in stock market-linked funds and locked away until you reach the age of 55 (expected to rise to 57 from 2028).  

You then have several options, including withdrawing up to 25% tax free or buying an annuity which will give a regular income for the rest of your life.  

Piggy bank illustration

How do private pensions work?

  • Get a pension plan tailored to you

    You'll be asked questions about your financial circumstances. You will then be recommended a pension plan best suited to your needs

  • Make regular or lump sum payments

    Most people commit to paying in a set amount each month. You receive tax relief on your contributions

  • Review your plan

    Regularly take note of how your pension plan is performing and the expected return it will provide

  • Receive your pension

    You’ll have a variety of options when it’s time to access your pension, including taking a percentage tax-free or buying an annual income known as an annuity.*

    *Currently, our partner, Profile Pensions doesn't offer annuities

What are the different types of personal pensions?

There are several different types of pensions including the UK state pension, workplace pensions which are set up by employers, and private or personal pensions.  

The latter can be split into the following categories:

  • Personal pensions

    A pension provider of your choice will provide guidance and invest money into funds on your behalf. These are defined contribution schemes where what you pay in will help determine the size of your retirement pot

  • SIPPS

    A self-invested personal pension is similar to a personal pension, but you are responsible for managing the investments instead of the pension provider. This means you’ll personally be buying and selling shares and deciding how much of your pot is invested where

What are the benefits of personal pensions?

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    Get a pension plan made for you in mind

    A dedicated pensions adviser will be available to help with any questions so you can make more informed choices to meet your retirement aims

  • Tick

    Consolidate old pensions in one place

    Helps you manage your retirement planning more easily rather than having smaller pension pots in different places. Could also help you increase the return

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    Impartial and whole of market view

    You’re not restricted as to where your money will be invested and can be confident the adviser is seeking the best returns for you

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    Clear and transparent investment fees and charges

    Anything you have to pay for the service will be clear from the start so you know exactly what it will cost

How much pension do I need to retire?

It depends on your personal circumstances and how you want your lifestyle to look after you stop working. Some financial advisers recommend you have 10 times your salary saved by age 67.  

Other pensions’ experts believe that you should aim for your income post-retirement to be between half and two-thirds of your final salary, after tax.  

Our pensions calculator can help you work out how much you need to be saving for a comfortable retirement and our guide on retirement planning should also help.

Target pension saved by age

Age 30

1 x salary

Age 35

2 x salary

Age 40

3-4 x salary

Age 45

5-6 x salary

Age 67

10 x salary

How to pick the best pension plan

There are many pension plans available so how do you pick one that is right for you? These steps should help…

  • 1

    Shop around

    Compare products from different providers. Ask for key facts document for an overview of how your money will be invested

  • 2

    Ensure you’re happy with the risk

    Ask questions about the funds where your money will be invested. Those promising higher returns may also present more risk

  • 3

    Make sure it’s affordable

    Check whether you’ll have to commit to a minimum investment each month and if so that you can afford it

  • 4

    Check for charges

    Understand what you’ll be paying for admin, as well as transfers and management fees. They all eat into your potential gains

Is a personal pension right for me?

A personal pension is probably right for you if you are self-employed or run your own business. They’re a tax efficient way of saving to help give you a better standard of living in retirement, especially when teamed with your state pension.  

You may decide against a personal pension if you already pay into a pension scheme through work and you feel this will suffice in retirement.

Older-man-using-laptop

How to get a pension plan with our partner Profile Pensions

Getting a plan with Profile Pensions is easy. Just follow these simple steps…

  • Personal details

    Sign up and complete a questionnaire to understand your attitude to risk

  • Get a tailor-made plan

    Receive a personalised pension plan tailored to you

  • Put your pension on track

    Add regular or one-off contributions, or transfer over existing pensions

Capital at risk. This website does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact your Profile Pensions dedicated adviser. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. MoneySuperMarket.com Ltd is an Introducer Appointed Representative of Profile Pensions, a trading name of Profile Financial Solutions Limited which is authorised and regulated by the Financial Conduct Authority. FCA number 596398. Registered in England & Wales, Company Number 07731925. Registered office address: Norwest Court, Guildhall Street, Preston, PR1 3NU.

Once you reach the age of 55 (expected to rise to 57 from 2028) you can begin withdrawing money from your private pension fund. However, keep in mind that the longer you wait, the greater potential for growth and more cash or income in retirement. Early retirement not only gives you less time to save but you’ll also have many more non-working years to fund.

Once you reach retirement and you’re receiving your private or workplace pension it will be taxed as income (if your total annual income exceeds your personal tax allowance). However, one-off lump sums of up to 25% of your total pension fund are not classed as income and can be withdrawn tax-free.

If you have a flexible access pension and you’re over 55 (expected to rise to 57 from 2028) you can cash in your private pension. However, you will pay tax on any value over your 25% tax free amount. The specific rules are different depending on the type of pension you have, so check with your provider.

A workplace pension is set up through your employer where they choose the provider. The company may also contribute to your pension pot, but you may have a more restricted choice as to where and how your money is invested. A personal pension allows you to decide who will be the provider or whether you’ll make your own investment decisions. You are responsible for your contributions and they’re not topped up by your employer.

The state pension age in the UK is currently 66 years old for men and women but will start increasing again from 6 May 2026. The Government’s website can tell you when you will reach state pension age, depending on your date of birth.

A pension credit is extra money provided from the government to help with housing and living costs if you’re over state pension age and on a low income.

If your husband, wife or civil partner dies, you may be eligible to receive a bereavement support payment. This is paid as a lump sum, followed by regular payments for up to 18 months.

You can usually choose to invest in one fund or spread your money over a range of funds. The funds invest in a number of varied sectors including UK and overseas shares, corporate bonds and property to try and give you the best return on your money.

MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.

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