Pensions

Pension Choices

Stakeholder Pensions

Before 2001 there were vast variations in the terms and conditions offered by Personal Pensions which made comparison, and therefore choice, difficult. With the introduction of Stakeholder Pensions all policies will all adhere to set minimum terms making it easier to compare like for like. Current legislation mean that :

1. Stakeholder pensions charges will be lower than many former personal pensions.
   
2. They offer attractive tax incentives, as contributions will be eligible for tax relief, as do the investment returns on the fund.
   
3. There are no start-up charge, and the maximum charge for the funds being managed is 1% per year.
   
4. Stakeholder pensions are very flexible, so members can stop and start payments if they need to without penalty.
   
5. They accept transfers in from other Stakeholder schemes at any time, and there will be no additional charge to transfer to another Stakeholder provider.
   
6. With a Stakeholder pension, members are able to continue contributions during periods of unemployment and the years spent raising a family.
   
7. When members retire, they are able to take part of the benefit as a tax-free lump sum.