Finding the right pension scheme means identifying what is available to you, then judging the alternatives on the grounds of cost, flexibility and performance.

That is, the fees and charges levied by the manager to run your pension, the flexibility of the terms of the pension to allow for unforeseen circumstances and how well the pension scheme performs in accumulating money for your retirement income.

Occupational (company) pension plans are provided by an employer. If one is available, in almost all cases workers are better off joining it, rather than taking out a pension privately.

The advantage is that the employer contributes to your pension account or perhaps provides the whole thing.

There are two broad types of occupational pension scheme and they are quite different.

'Final salary'

Your pension is a proportion of your salary just before retirement and is the most generous - your employer funds much or all of your pension.

The big choice...

These schemes were at the heart of the mis-selling scandal with workers being talked into leaving them by advisers for less generous personal plans - but plans on which the adviser earned a nice commission.

Your employer guarantees that benefits will be paid so performance of any investment of funds in the meantime is less important.

These schemes are making way for those which put more of an onus on workers making their own contributions.

Defined benefits

The second type of company pension is known either as a 'money purchase' or 'defined contribution' plan. Most new schemes are being set up on this basis.

Final benefits depend largely on what you contribute, while the employer contributes a lesser amount.

Your final salary has little direct bearing and there are no guarantees from the company.

Retirement income will also depend on how well the fund in which your contributions are accumulating performs and the fees and charges the fund manager levies on your contributions.

Personal

These operate in a similar way to money purchase schemes - but they are private investments taken out with a financial institution that offers pension plans.

There is no help from your employer here, so generally these schemes are not as attractive.

However, there are exceptions for some workers who work on contracts or who move around from employer to employer.

Sometimes arrangements can be made with employers to have contributions made to a personal pension.

Contributors to a personal pension can opt out of the government pension scheme.

Instead of having National Insurance deducted from your pay, it can be put into your personal pension account while any old NI contributions can be rebated by the DSS directly to your pension.

Professional advice is needed to dertermine if this is in your best interests.

So is your pension scheme up to scratch? For a checklist what a good scheme should offer click here.