You could end up with different types of pension depending on whether you’re employed, self-employed, and the pensions available from a particular employer.

1) The State Pension

It’s from the government and the amount you get is based on your National Insurance contributions. If you qualify for the full State Pension, the weekly rate is £164.35, or about £8,500 a year.

2) Workplace pensions

These are pensions provided by the firm you work for, so they’re also known as occupational or company pensions. Employers must now enrol their staff into a workplace pension if they are older than 22, earn more than £10k, and usually work in the UK – this is known as auto-enrolment.

3) Personal pensions

If you don’t have a workplace pension, for example if you’re self-employed, a personal pension can be a good way to save for retirement. There are two types of personal pension, stakeholder pensions and self-invested personal pensions.