Put simply, there are five main types of private pension arrangements in the UK that can be grouped into the categories:
- Occupational pension schemes
- Additional voluntary contribution pension schemes (which have a direct relationship with occupational pension schemes)
- Personal pensions
- Buyout policies (arising from occupational pension schemes = also known as s32 buyouts or trustee proposed buyouts)
- Retirement annuity contracts (known as s226 policies)
Whilst these for the main five categories, there can also be variations in each category. For example, there are many different types of occupational pension scheme as they can offer different types of benefit or be aimed at different groups of employees.