A pension is a recurring payment received as a result of a long-term savings plan. This payment can come from either the state or a personal investment, such as an insurance policy or a pension scheme. There are three main ways to save for a pension: making National Insurance contributions for a State Pension, participating in a workplace pension scheme, or establishing a personal pension plan.

The State Pension is based on an individual's National Insurance contribution history, and one may also receive additional payments from other state pension schemes. The Pensions Act of 2008 made it mandatory for employers to automatically enroll eligible employees in a workplace pension scheme. In addition, individuals can opt to invest in a private pension plan, such as a stakeholder or self-invested personal pension.

It is important to note that the date one receives their pension may not necessarily align with their retirement date, and can depend on the specific terms of their workplace or private pension scheme. The age of eligibility for the State Pension is fixed, but the retirement date for workplace and private pensions may vary. Furthermore, one may choose to defer their pensions to increase their value, or opt for early retirement by accessing their workplace pension at age 55.

It's crucial to carefully consider the options and plan for a financially secure retirement, as a well-structured pension can provide a stable source of income during one's golden years.