Frequently Asked Questions

What is the difference between an occupational and a personal pension?

An occupational pension is a pension scheme provided by your employer. It may or may not have been contributory. Your pension benefits will relate to your number of years service and your final salary. Such schemes are known as “Final Salary” or “Defined Benefit” Schemes.

However an increasing number of occupational schemes in recent years have for new members been “Defined Contribution” or “Money Purchase” schemes. The benefits will depend on the value of the pension fund based on your employers and your contributions (if a contributory scheme) when you take benefit.

A personal pension is a pension plan you took out personally –most likely from a life insurance company. Such plans are known as “Money Purchase” pension plans. Your retirement benefits will depend on the value of your fund when you take benefit and the pension options available to you.

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