Established under the Social Security Act 1986, personal pensions allow individuals to make their own provision for an income in retirement. Tax relief is allowable on the contributions at the investor's highest marginal tax rate. Investments grow free of all taxes to create a fund to be used at retirement to purchase an annuity. Up to 25% of the fund may be taken, as tax-free cash and the balance must be used to purchase an annuity. Alternatively, from July 1995 the balance may be used in an income withdrawal annuity arrangement.