![People walking](/sites/default/files/styles/full_height_banner/public/2023-03/People%20walking%202a.jpg?itok=XtNCRIGO)
How do private pensions work? How are defined benefit and defined contribution pensions different? And what about 'pension freedoms'?
Authors
![Isaac Delestre](/sites/default/files/styles/square_desktop/public/2022-06/Isaac_Delestre.jpg?itok=-50Amv5e)
Isaac Delestre
Research Economist
Isaac is a Research Economist in the Taxation sector, focusing on the taxation of high-income individuals and closely-held corporate entities.
Explainer details
- DOI
- 10.1920/ex.ifs.2023.0003
- Publisher
- Institute for Fiscal Studies
Suggested citation
Delestre, I. (2023). Private pensions explained [Explainer] Institute for Fiscal Studies. Available at: https://ifs.org.uk/articles/private-pensions-explained-0 (accessed: 30 June 2024).
More from IFS
Understand this issue
![Pensions letter](/sites/default/files/styles/square_desktop/public/2023-12/Pensions%20Letter.jpg?itok=mv1QVYJO)
The future of the state pension
podcast
We discuss the current challenges facing the state pension - and options for reform.
21 December 2023
![Older woman using iPad](/sites/default/files/styles/square_desktop/public/2023-12/Older-woman-uses-ipad_2.jpg?itok=O2oOL1PC)
Pensions are far from broken but could still use a fix
comment
Paul Johnson writes for The Times on the 'simple steps' get us to a 'stable, simple, affordable' pensions system.
18 December 2023
![Woman working at her desk](/sites/default/files/styles/square_desktop/public/2023-11/Older-worker-at-desk-2_0.jpg?itok=FK1zrjeB)
Retirement is not always a choice that workers can afford to make
comment
"More of us may feel little choice but to work a year or two longer than planned." Paul Johnson writes for The Times.
6 November 2023
Policy analysis
![Elderly couple looking at paperwork](/sites/default/files/styles/square_desktop/public/2024-06/elderly%20couple%20feature.jpg?itok=6tgAqkZa)
Pensions: five key decisions for the next government
report
How will the next government change pensions policies? This report examines key decisions that need to be taken.
7 June 2024
![Elderly couple looking at paperwork](/sites/default/files/styles/square_desktop/public/2024-06/elderly%20couple%20feature.jpg?itok=6tgAqkZa)
Key decisions await the pensions minister after the election
press release
How will the next government change pensions policies? This report examines key decisions that need to be taken.
7 June 2024
![Cross generational family](/sites/default/files/styles/square_desktop/public/2023-12/Cross-generational-family.jpg?itok=1iq8HQVP)
The future of the state pension
report
This IFS Pensions Review report sets out key challenges for the UK’s state pension system and suggests a way forward for the future
13 December 2023
Academic research
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-01/WP202402-Saving-after-retirement-and-preferences-for-residual-wealth_Page_01.jpg?itok=az2jhE9X)
Saving after retirement and preferences for residual wealth
working paper
We use administrative data for Norway to estimate an incomplete-market life-cycle model of retired singles and couples.
18 January 2024
![Working paper cover](/sites/default/files/styles/portrait/public/2024-03/WP202409-House-price-rises-and-borrowing-to-invest.jpg?itok=4udJUAU_)
House price rises and borrowing to invest
working paper
We propose a borrow-to-invest motive by which house price gains affect household spending on residential investment.
27 March 2024
![Working Paper Cover Page](/sites/default/files/styles/portrait/public/2023-08/WP202320-The-Heterogenous-Effects-of-Social-Assistance-and-Unemployment-Insurance_Page_01.jpg?itok=BDVnsz5U)
The heterogeneous effects of social assistance and unemployment insurance: evidence from a life-cycle model of family labor supply and savings
working paper
We empirically analyze the heterogeneous welfare effects of unemployment insurance and social assistance.
5 June 2023