A personal pension is one you arrange independently to save for retirement. These pensions are always defined contribution (DC) schemes. Common types include stakeholder pensions, which have low fees and a default investment option, and Self-Invested Personal Pensions (SIPPs), which offer a broader range of investments but often come with higher charges.

A workplace pension, on the other hand, is set up by an employer to help employees save for retirement. It can be either a defined benefit (DB) or defined contribution (DC) scheme, depending on the specific plan offered by the employer.