An arrangement between an individual who is self-employed, in non-pensionable employment or who is not a member of an employer’s scheme, and a pension provider (such as an insurance company) which enables the individual to make provision for a pension on a money purchase basis. See also occupational pension scheme.
An Appropriate Personal Pension (APP) is a personal pension scheme that has been certified as suitable for contracting out of SERPS.
Glossary Personal pension