You receive tax relief on what you pay in, your contribution is invested in a fund which grows virtually free of tax and at retirement you may be able to exchange a part of your taxed pension for a tax-free lump sum. As with other tax-privileged investments, the Inland Revenue sets maximum limits on the amounts you can pay in. Important Notes Past performance is not necessarily a guide to future performance. Both capital and income values of investment funds may go down as well as up and you may not get back the amount invested. Exchange rate variations may cause the value of overseas investments to increase or decrease.
Pension funds are no longer able to reclaim the tax credits on dividends from UK companies.
Tax assumptions are those currently applicable and are subject to statutory change. The value of tax relief will depend on your individual circumstances.