• Personal pension – this is a type of pension that you arrange yourself. The amount you receive at retirement depends on how much you have saved and how much it has grown. You may have seen this type of pension be called a SIPP. Some SIPPs allow property to be included in the investment selection. Some employers offer a personal pension instead of a workplace pension. See “Defined contribution” also
• Defined contribution – also known as a Money Purchase scheme, the amount you get at retirement will depend on how much you have put in and how much it has grown by. Contributions can be made by both you and your employer
• Workplace pension – a workplace pension scheme is a way of saving for your retirement through contributions deducted from your wages. Your employer may also be contributing. If you are eligible you may have been enrolled into an auto-enrolment scheme
• Stakeholder pensions – a stakeholder pension is similar to a personal pension, with some very important differences – charges tend to be lower, but so are the investment options
• Defined benefit – unless you are already enrolled on one of these types of pensions they are now quite rare. The amount you receive at retirement is based on how many years you have been a member of the employer’s scheme and the salary you earned at the point of retirement. A secure income for life is provided, which often rises in line with inflation each year. Please note that there are strict rules about transferring out, as the benefits of remaining in a Defined Benefit scheme can outweigh moving into a Defined Contribution scheme
• State pension – once you reach the qualifying age (currently 66) you are eligible to receive this benefit from the government. The amount you are eligible to receive will depend on your personal circumstances. Find out more about the gov.uk’s dedicated page.

At Chelsea, we offer Personal Pensions, also known as Defined Contribution pensions.

A pension is a tax-efficient way of saving money for retirement.

• Tax relief – the government will top up any personal contributions on your pension. That means if you save £80 into your pension, £20 will be added to the contribution.
• Control over where you are invested. You may like to invest into one of the award-winning VT Chelsea Managed funds, or choose from the 3,000 funds available.
• Consolidate all your pensions in one place, for easier management.
• 25% tax-free cash when you go into drawdown.

• The annual allowance is specific to your personal circumstances. Find out about the different allowances here.
• You can open multiple pension wrappers within one tax year.
• When you reach age 55 (rising to 57 from 2028) you can access the money from your pension as an income, a lump sum or a combination of both, if you wish to.

• To encourage you to save into your pension, the government also adds money to any eligible personal contributions through pension tax relief.
• A pension is a good way of building up a pot of money to live on in retirement, when you may no longer want or be able to work. If you can wait until you’re 55 (rising to 57 from April 2028) to access your savings and you’re comfortable making your own decisions, a personal pension might work for you.
• A personal pension is a long-term investment that gives your money time to grow. If you’re saving into a Personal Pension, you can continue to contribute until you’re ready to decide how to use your savings. The government will also add tax relief (if eligible) to your investments. You may be able to claim more from HMRC if you’re a higher rate or additional tax payer.
• If you have access to a workplace pension (which your employer will also contribute to), a personal pension won’t replace it. But it’s a useful way of saving if a workplace scheme isn’t an option – if for example, you’re self-employed – or you want to add to your workplace pension savings.
• A personal pension can give you control of where your money is invested. For example, it could help you invest in ethical or sustainable funds (sometimes referred to as Environmental, Social and Governance – or ESG – funds) if that’s important to you.
• The benefits of a pension – personal or otherwise – are long-term ones. It’s designed to help you save throughout your working life. If you’re looking for a shorter-term way to save or invest, or are likely to need the money before you’re 55 (rising to 57 from April 2028), other products, such as an ISA, may be a better option.

In the UK alone, there are over 3,000 different funds to choose from, so choosing the right one can feel daunting.

At Chelsea, we have collated a number of different options:

The award-winning VT Chelsea Managed Funds – The VT Chelsea Managed funds offer a complete investment solution. You can choose from one of the four managed funds, based on your requirements and attitudes to risk. Find out more here.

Build a Portfolio – If you are interested in building your own portfolio, why not head over to our Research Hub or read our Build a Portfolio guide. Alternatively, you can also use our Viewpoint or Fund Review to help you make an informed decision.

Once you know where you want to invest, there are a number of ways you can invest:

• Log in to your account and process your instructions yourself
• Call us on 020 7384 7300 and our helpful staff will assist you
• Complete an application form and forward it to us at:

Chelsea Financial Services, St James Hall, Moore Park Road, London, SW6 2JS

Before investing, you should ensure that you have read the key investor documents of the fund(s) you want to invest in to, the pre-sale illustration(s) and the relevant terms and conditions. More details can be found on our dedicated disclosures page.