​KembaraXtra – Legal Terms – Pension


A pension is an income paid after retirement under a state, occupational, or private pension scheme.


Pensions may arise from state retirement benefits, company pension schemes, or personal pension arrangements.


Contributions to approved pension schemes generally attract tax relief subject to statutory limits.


Pension income is taxable, although certain lump sum payments may be tax-free.


Occupational and private pensions are usually taxed through the PAYE system, while state pensions are generally paid gross.