It’s a type of long term savings plan that allows you to save money for later life.
It has a beneficial tax treatment compared to various other savings schemes.
There are a number of pension schemes; ones you set up yourself and ones offered and run by the company you work for. For more information on the types of pension schemes about, take a look at this.
Further reading on the Pensions Advisory Service website.
If you’d like to know more about whether you should opt-in for a workplace pension, click here.
Do I have to pay into one?
The short answer is no.
It is a legal requirement now for companies to at least offer you a pension, this doesn’t mean you need to accept but they do need to offer you one.
You are not legally obligated to pay into a pension of any kind. For more information as to why you may, however, like to consider it, click here.