SIPP pension funds

In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. It is a tax deferred savings vehicle that allows for the tax-free accumulation of a fund for later use as a retirement income.  Savings Credit can provide extra money for those pensioners aged 65 or over who have made some provisions towards their retirement. Deciding to take your money - when you do decide to start claiming your pension you convert your pot into a regular income for the rest of your life. You may also be able to take a tax-free lump sum when you start receiving your pension. If the pension scheme rules allow it you may also be able to put money into someone else's occupational or public service scheme or a SIPP pension fund. You'll not get tax relief on your contribution but the other person can get relief. If you work for a business with fewer than five employees, your employer doesn’t have to offer a pension scheme. But still check what’s available, as they may offer a scheme anyway. If you have a defined benefit (salary-related) company pension you can request an annual statement but some companies will send them automatically. SIPP pension funds If you have a defined contribution (non salary-related) company pension you must receive an annual statement. If you reach State Pension age between 6 April 2008 and 5 April 2015 and already have 20 qualifying years you may be able to pay voluntary Class 3 National Insurance contributions for up to six additional years. Effect of early retirement on 'final salary' schemes - with these schemes the pension you get when you retire is usually based on a fraction of your salary multiplied by the number of years you were a member of the scheme. So if you're considering early retirement you'll probably receive a smaller pension.