A Personal Pension Plan is a pension plan that applies to one person only instead of a group of employees. Most of the time, personal pension plans apply to someone who is self-employed or who is some type of an independent contractor. Most personal pension plans are managed by a life insurance company, or an investment firm. Anyone who has an earned income and cannot join some kind of employee pension plan can set up a personal pension plan. In addition to this, all contributions and tax claims would be made on a personal basis. Personal Pension Plans are more flexible than those offered by companies and are also more portable. They also allow you the option of selecting which type of investment you want to put your money in and how much you want to invest. Most of the time Personal Pension Plans are built using ROTH IRAs because of the tax benefits involved. Rates of return are completely dependent on the type of investment chosen.