What is a personal pension?
A personal pension is a retirement scheme you arrange yourself rather than through an employer. You choose the provider and what to contribute, and receive tax relief on contributions. It is a defined contribution arrangement, so the value depends on contributions and investment performance.
It is the main route for the self-employed, who have no employer to enrol them, and a common supplement for employees who want to save beyond the workplace scheme.
Most personal pensions operate relief at source: the provider claims basic rate relief and adds it to the pot, and higher and additional rate taxpayers claim the rest through self assessment. That extra relief is routinely left unclaimed.
Consolidating old pots into one personal pension can simplify administration and reduce charges, but it is not automatically right — older contracts can carry guaranteed annuity rates, protected tax-free cash or protected pension ages that are lost on transfer, and exit penalties still exist. Check what is being given up before moving anything.