Personal pensions are savings plans that can be set up by an individual to ensure they have enough money in retirement. They are a type of private pension, are contract-based and are always defined contribution scheme which means that the amount available at retirement depends on your contributions and how your investments performed.
There are three sub-types of personal pensions: regular Personal Pension (PP), Self-Invested Personal Pension (SIPP), and Stakeholder Pension (SHP), all of which are contract-based schemes.
Group personal pensions
Personal pensions are a contract between an individual and a pension provider but an employer may also arrange for group personal pensions for their employees; while the pension was arranged by the employer, it still remains a contract between the individual and the pension provider.
Group personal pensions can be: Group Personal Pension (GPP), Group Self-Invested Personal Pension (GSIPP), or GroupStakeholder Pension (GSHP).