A personal pension scheme is a type of retirement savings plan established by an individual, as opposed to a state or employer-sponsored pension plan.
An example of this would include a SIPP in the UK, a Pillar 3a in Switzerland, or an IRA in the USA.
When making contributions to these accounts, you will often benefit from tax advantages, so it is definitely worth looking into whether such a pension scheme would be suitable for you.
Unlike state or many employer-based pension plans, personal pension schemes provide the flexibility in choosing your investment options and determining how much you contribute.
However, it is important to note that there are limitations to accessing these funds prior to retirement, with often only a few exceptions available.
As such, should you decide to contribute to a personal pension scheme, you must also factor in your current expenses to ensure that you are comfortable contributing to an account that you may very well not be able to access for many years.