A private pension is any retirement savings arrangement that sits outside a country’s state or public pension system. A private pension isn’t tied to a single employer the way older company pension schemes used to be. How a Private Pension Works, Step by StepThe mechanics are fairly consistent across most private pension products, even though the specific rules vary by country and provider. The Nigerian Angle: Private Pensions Under the Contributory Pension SchemeFor Nigerian readers, “private pension” doesn’t sit entirely outside the formal system the way it might in the UK or US. Private Pension vs. State Pension: The Core DifferenceIt comes down to control and reliability.