How your DC pension works for you
Your contributions count
You and perhaps your employer, make contributions into your pension plan and then these contributions are invested into your chosen investment funds.
The value of these funds potentially rises (or falls) and at retirement, your funds can be used as an income and perhaps also provide a tax-free lump sum.
Also remember – your pension tax breaks under current regulation
- Tax relief on each contribution you make (up to certain limits)
- Pension fund grows tax-efficiently
- You can take part of your pension as a tax-free lump sum
Click here for more information about your pension tax breaks.
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