The word "pension" covers several quite different things in the UK, and conflating them causes a lot of confusion. Broadly there are three pillars: the State Pension, workplace pensions, and personal pensions — and many people will have more than one.
The State Pension
Provided by the government and based on your National Insurance record rather than what you've saved, the State Pension is the foundation. It's the same mechanism for everyone who qualifies, and it's separate from — and in addition to — anything you build privately.
Workplace pensions
Arranged through your employer, usually via auto-enrolment, with contributions from you, your employer, and tax relief. Most modern workplace pensions are defined contribution — a pot built from contributions and investment growth. Older defined benefit schemes promise an income based on salary and service instead.
Personal pensions
Ones you set up yourself, independent of an employer — useful if you're self-employed, or want to save beyond a workplace scheme. These include standard personal pensions and self-invested personal pensions (SIPPs), which offer more control over how the money is invested.
The tax relief that makes pensions attractive
Across workplace and personal pensions, contributions generally attract tax relief, which is a large part of what makes pensions a tax-efficient way to save for later life. The rules and limits around contributions and relief are set by government and reviewed periodically, so check current allowances on gov.uk. For how a Lifetime ISA compares as a complementary option, see our LISA guide.
Keeping track of old pensions
Changing jobs several times can leave a trail of small workplace pensions scattered across providers. They don't disappear, but they're easy to lose track of. Keeping a simple record of which pensions you have, and reviewing them occasionally, stops money quietly going astray — the government's Pension Tracing Service can help find lost ones.