nowadays we're living longer so we need more money than previous generations once did that's why many people choose to enhance their state entitlement through a scheme set up by their employer or with a personal pension the money is invested by their pension provider on their behalf with the aim of building up a more substantial sum for retirement tax advantages for every you put in the government adds p for the tax year for basic rate taxpayers higher rate taxpayers can also re claim an additional p for every via their tax return if you're offered a company scheme you may be able to benefit from your employer's payments pensions invest in different types of investments including investments based on stocks and shares which carry different levels of risk the value of your investment can fall as well as rise and you may get back less then you pay in if you have a personal pension but stop paying into it you could actually lose much of whatever you've already paid for example by stopping paying into your fund the charges may reduce your fund meaning you could lose out when you retire simple steps to starting a pension account you decide to save for retirement with a personal pension plan you choose a provider type of pension and the age you would like to retire at you begin making payments these payments up to of your relevant uk earnings will receive tax relief normally at your highest rate