Get Independent Advice on Stakeholder Pensions
A Stakeholder Pension is a type of pension that acts as a "starter" pension for those that want to boost their retirement income.
Stakeholder pensions are intended to work as a second "top-up" pension in addition to the basic state pension for those that don't have access to company (occupational) pension schemes.
Companies with five or more employees must make a pension scheme of some kind available to employees, and may choose to offer a stakeholder pension.
Is the income guaranteed like the state pension?
The short answer is no; your contributions are invested into stocks and shares and other funds. Some schemes offer you a choice of where your money is invested.
Is a Stakeholder Pension a simple option?
Stakeholder Pensions are a relatively simple option for companies and individuals to set up. They are also lower in cost than most typical personal pension schemes. Providers can only charge a maximum management fee of 1% of the value of your pension fund each year (this is less than is charged by most pension providers).
You will not be penalised for putting additional money in or transferring it, allowing you to be more flexible in your approach to pension contributions. You can contribute as little as £20 at a time, and contributions need not be regular.
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