ile ged ▁individual ▁invest ment ▁vehicle , ▁with ▁the ▁primary ▁purpose ▁of ▁building ▁a ▁capital ▁sum ▁to ▁provide ▁ret irement ▁benefits , ▁although ▁it ▁will ▁usually ▁also ▁provide ▁death ▁benefits . ▁ ▁These ▁plans ▁first ▁became ▁available ▁on ▁ 1 ▁July ▁ 1 9 8 8 ▁and ▁replaced ▁ret irement ▁ann u ity ▁plans . ▁ ▁Both ▁the ▁individual ▁can ▁contribute ▁as ▁well ▁as ▁their ▁employ er . ▁ ▁Ben ef its ▁can ▁be ▁taken ▁at ▁any ▁time ▁after ▁age ▁ 5 5 ▁if ▁the ▁plan ▁rules ▁allow , ▁or ▁earlier ▁in ▁the ▁case ▁of ▁ill ▁health . ▁ ▁In ▁the ▁past , ▁legisl ation ▁required ▁benefits ▁to ▁be ▁taken ▁before ▁age ▁ 7 5 , ▁and ▁many ▁plans ▁still ▁contain ▁this ▁restriction . ▁Part ▁of ▁the ▁fund ▁( us ually ▁ 2 5 %) ▁may ▁be ▁taken ▁as ▁a ▁tax - free ▁l ump ▁sum ▁at ▁ret irement . ▁New ▁rules ▁on ▁drawing ▁on ▁the ▁ret irement ▁fund , ▁known ▁as ▁" P ension ▁Fre edom ", ▁came ▁into ▁effect ▁on ▁ 5 ▁April ▁ 2 0 1 5 . ▁ ▁There ▁are ▁two ▁types ▁of ▁personal ▁p ension ▁scheme : ▁ins ured ▁personal ▁p ensions , ▁where ▁each ▁contract ▁will ▁have ▁a ▁set ▁range ▁of ▁invest ment ▁funds ▁for ▁plan hold ers ▁to ▁choose ▁from ▁( this ▁is ▁not ▁as ▁restrict ive ▁as ▁it ▁sounds , ▁as ▁some ▁modern ▁schemes ▁have ▁over ▁a ▁thousand ▁fund ▁options ) ▁and ▁self - inv ested ▁personal ▁p ensions ▁( SI PP s ). ▁