One or More ?

The Basic State Pension is the one we're all probably most familiar with and which most people in the UK are eligible for. You qualify for it through the payment of National Insurance Contributions you've made throughout your working life.
But there are many other types of pensions available to you - and they'll give you an additional income and therefore a more comfortable retirement than the current State Pension will provide on its own.
And the new 2006 tax rules make it possible to have more pensions running at the same time. Individuals in Company run occupational schemes can now also pay into their own Personal Pension at the same time.
Having more than one pension is possible as the limit you can pay into pension each year is based on your and your employer's total contributions into all of your policies. All the contributions you personally make are eligible for tax relief up to the amount of your annual salary or the "annual allowance" (which is currently £235,000 for this 2008/09 tax year), whichever is the smaller. That means you could contribute the equivalent of your whole salary into pension plans if you had the capital to do so.
More than one pension = more than one fee ?
One thing to consider when taking out another pension is that most providers will charge an annual fee. If you have more than one pension, you'll have more than one charge to pay per year, however, these will usually be on a percentage basis so multiple polices may not necessarily mean higher charges in real terms.
What types of pensions are there ?
A brief look ;
1. If you take out a Self-Invested Pension Plan (SIPP) then you'll have more choice as to how and where your money is invested.
2. Occupational or Company Pension schemes run by employers are a good addition to the Basic State Pension. A company pension means that contributions are deducted from your salary and passed over to the pension provider to be invested in the fund or funds you or your adviser has chosen along with the contribution from your employer.
3. A Personal or Stakeholder Pension are the main types of pension contracts used for individuals. Stakeholder contracts have charges capped by legislation so that they can't charge more than 1.5% of the value of your fund for the first 10 years of the contract. They usually offer a limited investment choice. Personal Pensions are very similar in structure but have no limit on their annual charges but the choice of investment funds is normally much higher.
What next ?
Deciding how comfortable and what type of lifestyle you would like to have when you retire should help you determine whether you need more than one pension. The important thing is to speak to a Financial Adviser who will help you research your choices thoroughly.
And start saving towards your pension as early as you can.