Simply put, a pensions scheme is a type of savings plan to set aside funds for later in life. Often with a favourable tax regime, pensions provide financial stability for millions in later life.
There are several types of pension schemes. Some may be run by your employer, others you can set up by yourself. And saving into one scheme doesn’t mean you can’t save into another or use other tax-efficient savings plans like ISAs.
When retirement age comes, there will be several options available to you. These may include being able to take a tax-free cash sum and the added security of being able to receive a regular income.