What is a pension and how does it work? 

 A pension is basically a long-term retirement plan that you build up over your working life so that in later life you have more money to live off.

 Advantages of a pension:

• You pay in money regularly.
• You get a top up from the government in some countries.
• Your employer can pay in money as well.
• You can pay into someone else’s (like a spouse or child’s).

Types of Pensions:

• State Pension
• Stakeholder Pension 
• Workplace Pension