How Do You Spell PERSONAL PENSION?

1. A personal pension is a type of retirement savings plan that individuals can establish on their own to secure their financial future during old age. It is a private pension scheme in which individuals contribute to a personal pension pot that grows over time. Personal pensions are designed to supplement state and workplace pensions, providing individuals with an additional source of income in retirement.

   With a personal pension, individuals have control over how their contributions are invested, allowing them to choose from a range of investment options such as stocks, bonds, and funds. This flexibility allows individuals to tailor their investments to their risk tolerance and financial goals.

   Contributions to personal pensions are made through regular payments or lump sum investments, and they attract tax relief from the government, making them an attractive option for retirement savings. The government adds tax relief to the contributions, thereby boosting their value. Individuals usually cannot access their personal pension until they reach a certain age, typically around 55 or 60, depending on the country and pension regulations.

   Upon retirement, the accumulated funds in a personal pension can be used in several ways. Individuals can choose to purchase an annuity, which provides a regular income for life, or they can opt for flexible drawdown, where they can withdraw a portion of their pension while keeping the rest invested. Alternatively, individuals may decide to take a lump sum from their personal pension, subject to certain tax regulations.

   Overall, a personal pension offers individuals the opportunity to save for retirement and ensure financial security in old age, giving them greater control and flexibility over their pension investments.

Common Misspellings for PERSONAL PENSION

The etymology of the word "personal pension" can be broken down as follows:

1. Personal: The word "personal" derives from the Latin word "personalis", which means "of a person". It entered the English language in the mid-17th century and refers to something that relates to or is intended for a particular individual.

2. Pension: The word "pension" has its roots in the Latin word "pensio", which means "payment". It entered the English language in the late 14th century and originally referred to a regular payment made to someone, often in recognition of past services.

When these two words are combined to form "personal pension", it indicates an individual retirement savings plan or scheme that allows a person to accumulate funds to provide income in their retirement years.