Understanding your pension

To help you plan your retirement you need to know what kind of pension you’ve got. You may have more than one.

What kind of pension do you have?

Along with the State Pension from the government, there are 2 main types of pension:

  • Defined contribution – based on how much money has been paid into your pension pot
  • Defined benefit (final salary or career average) – based on your salary and how long you’ve worked for your employer

Along with defined contribution and defined benefit there are also other types, we have outlined some below;

  • Personal pension – you choose the provider and make the arrangements for the contributions to be paid
  • NEST pension – a workplace pension set up by the government that you may be able to join through your workplace or if you are self-employed. Once a member, you can carry on saving this way even if you change jobs or stop working.
  • Self invested personal pensions (SIPPS) - is a pension ‘wrapper’ that holds investments until you retire and start to draw a retirement income. A SIPP lets you invest almost anywhere and choose your own investment, so not suitable for all.
  • Stakeholder pension – form of defined contribution personal pension is designed to be accessible to all. They have a default investment strategy, capped charges and low flexible minimum contributions.

If you’re unsure about what kind of pension you have and your options book an appointment and Newcastle Financial Advisers can help you find out.

We also offer informal retirement presentations, these last about 1 hour and we provide light refreshments. They are a great way to get more information. You’ll get the chance meet a Financial Adviser from Newcastle Financial Advisers and ask questions you may have. Find out when the next Big Talk presentation is.



Newcastle Building Society introduces to Newcastle Financial Advisers Limited for advice on investments, pensions, inheritance tax planning, and life cover. Newcastle Financial Advisers Limited is an appointed representative of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.