F& W Financial Solutions Limited
Independent Financial Solutions

If you want to enjoy your retirement, you need to plan how you are going to save for it. Stakeholder pensions are a low cost, flexible option. 

A stakeholder pension scheme will put your contributions into investments for you. Then when you retire, you will use your fund to buy a pensions.

What is different about stakeholder pensions?

Stakeholder pensions must meet certain minimum requirements, by law, to ensure that they offer value for money, flexibility and security. 

• there is a maximum charge of  1.5% pa on the value of each member's fund for  the first 10 years. After which the charge reduces to a maximum of 1% p.a.
• you must be able to transfer into or out of the scheme without incurring extra charges
• stakeholder schemes will accept contributions as little as £20 
• you can increase, reduce or stop your contributions without paying extra charges 
• schemes are run by trustees or an authorised scheme manager, in the interest of their members
• if your employer is required to provide you with access to a stakeholder pension scheme, they must also provide the facility for your contributions to be deducted from your pay  
• you can continue paying into a stakeholder plan if you stop working 

If you decide that a stakeholder pension scheme is right for you, you can either join your employers (unless they are exempt) or choose to join a different one.  

You get tax relief on your contributions, which means that for every £100 that goes into your pension you only pay £78 (based on normal tax rate 2007/8). If you are a higher rate taxpayer you may be able to reclaim further relief ( Based on tax year 2007/8).

How will stakeholder affect my employer?

The Government is aiming for the majority of people in the UK to be offered access to a pension scheme at work. Employers who do not currently offer their employees access to a pension scheme may have to, within certain limits.

This means that if your employer does not currently provide you with the option of joining a pension scheme they may have to. It does not mean however that your employer will have to contribute to the scheme.

Find out if a stakeholder pension scheme could be right for you.

Want to know more?

The Stakeholder Pensions telephone helpline is 0845 601 2923 - Monday to Friday 9.00am to 5.00pm. This is a local call rate number provided by The Pensions Advisory Service .