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Pensions are financial tools whose purpose is the provision of money in old age.
Because it is considered good public policy to try and get people to save for their own retirement (rather than rely on the State) pension funds are given special tax treatment.
Over the years, however, governments have changed the system so much that it is all highly complex (much more complex than it should be).
The following links give a basic guide, but because of the complexity, professional advice is essential.