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A pension is the most common way of saving for your retirement. There are lots of different types of pensions but the general principle is that you put money into your pension each month and in return, this can be used to provide you with an income once you have retired. There are a number of tax advantages when you put money into a pension and also when you take money out.
The value of pensions can fall as well as rise, you may get back less than you invested.
Tax treatment varies according to individual circumstance and is subject to change.