Skip to main content
MENU
  • Home
  • About Us
  • How We Work
    • Our Advice ProcessOur Investment Process
  • Our Team
  • Privacy Policy
  • Testimonials
  • Enquiry Forms
    • GeneralInvestmentMortgagePensionProtection
  • Contact Us
  • Financial Planning
  • Pensions
    • Pensions
    • Retirement Planning
    • Personal
    • Occupational / Auto Enrolment
    • Stakeholder
    • Executive Pension Plan
    • SSAS
    • Annuities
    • Income Drawdown
    • NEST
    • State Pension
  • Savings & Investments
    • Savings & Investments
    • Introduction
    • National Savings Products
    • Fixed Interest
    • With-profits
    • ISAs
    • Junior ISAs
    • Capital Investment Bonds
    • Collectives
    • Offshore Collectives
    • Equities
    • Unit Trusts
    • Investment Trusts
    • OEICs
  • Mortgages
    • Mortgages
    • Introduction to Mortgages
    • Mortgage Repayment
    • 1st Time Buyer
    • Remortgaging
    • Standard Variable Rate Mortgages
    • Cashback Mortgages
    • Fixed Rate Mortgages
    • Offset Mortgages
    • Tracker Mortgages
    • Buy To Let
  • Life Assurance
    • Life Assurance
    • Introduction
    • Investment Linked
    • Family Income Benefit
  • Health Insurance
    • Health Insurance
    • Introduction
    • Critical Illness
    • Private Medical
    • Income Protection
  • Business Insurance
    • Business Insurance
    • Introduction
    • Directors' & Staff Benefits
    • Pensions & Capital
    • Keyperson
    • Share Protection
    • Income Protection
    • Employers' Liability
    • Professional Indemnity
  • General Insurance
    • General Insurance
    • Introduction
    • ASU
    • Redundancy / Unemployment
  • Equity Release
    • Equity Release
    • Introduction
    • Types of Equity Release
    • Drawdown Lifetime Mortgage
    • Home Income Plan
    • Home Reversion Plan
    • Lifetime Mortgage
    • Costs
  • Taxation
    • Taxation
    • Introduction
    • Income Tax
    • Capital Gains Tax
    • Inheritance Tax
  • Wealth Management
    • Wealth Management
    • Introduction
    • Relationship Management
    • Trust Information
    • Lasting Power of Attorney
    • Wills
  • Financial Calculators
    • Financial Calculators
    • Mortgage Borrowing
    • Mortgage Repayment
    • Mortgage Overpayment
    • Stamp Duty
    • Loan
    • Single Investment
    • Monthly Investment
    • Annual Investment
  • Research Links
  • My Portfolio
  • Market Data
  • Financial Planning
  • Pensions
    • Retirement Planning
    • Personal
    • Occupational / Auto Enrolment
    • Stakeholder
    • Executive Pension Plan
    • SSAS
    • Annuities
    • Income Drawdown
    • NEST
    • State Pension
  • Savings & Investments
    • Introduction
    • National Savings Products
    • Fixed Interest
    • With-profits
    • ISAs
    • Junior ISAs
    • Capital Investment Bonds
    • Collectives
    • Offshore Collectives
    • Equities
    • Unit Trusts
    • Investment Trusts
    • OEICs
  • Mortgages
    • Introduction to Mortgages
    • Mortgage Repayment
    • 1st Time Buyer
    • Remortgaging
    • Standard Variable Rate Mortgages
    • Cashback Mortgages
    • Fixed Rate Mortgages
    • Offset Mortgages
    • Tracker Mortgages
    • Buy To Let
  • Life Assurance
    • Introduction
    • Investment Linked
    • Family Income Benefit
  • Health Insurance
    • Introduction
    • Critical Illness
    • Private Medical
    • Income Protection
  • Business Insurance
    • Introduction
    • Directors' & Staff Benefits
    • Pensions & Capital
    • Keyperson
    • Share Protection
    • Income Protection
    • Employers' Liability
    • Professional Indemnity
  • General Insurance
    • Introduction
    • ASU
    • Redundancy / Unemployment
  • Equity Release
    • Introduction
    • Types of Equity Release
    • Drawdown Lifetime Mortgage
    • Home Income Plan
    • Home Reversion Plan
    • Lifetime Mortgage
    • Costs
  • Taxation
    • Introduction
    • Income Tax
    • Capital Gains Tax
    • Inheritance Tax
  • Wealth Management
    • Introduction
    • Relationship Management
    • Trust Information
    • Lasting Power of Attorney
    • Wills
  • Financial Calculators
    • Mortgage Borrowing
    • Mortgage Repayment
    • Mortgage Overpayment
    • Stamp Duty
    • Loan
    • Single Investment
    • Monthly Investment
    • Annual Investment
  • Research Links
  • My Portfolio
  • Market Data
  • Home
  • Stakeholder

Stakeholder

Stakeholder Pension Schemes

A Stakeholder Pension (SP) is a type of Personal Pension Plan designed to provide an optional lump sum and income in retirement. In common with a Personal Pension Plan, Stakeholder Pensions are available to any United Kingdom resident under the age of 75.

You, in conjunction with your adviser, choose the pension provider and make the arrangements for paying the contributions to the plan.

You can start a SP even if you have a workplace pension or if you’re self-employed and don’t have a workplace pension. You don’t have to be working to take out a SP and you can also provide a SP for your spouse/partner or your child/children.

When you contribute to a SP, your money is invested by the pension provider (usually an insurance company) to build up a fund/pension pot over a number of years.

A Stakeholder Pension incorporates a set of minimum standards established by the government, which include:

  • A capped charging structure which is a maximum of 1.5% per year for the first 10 years and 1% per year thereafter
  • The minimum contribution is £20 per month
  • You can pay in lump sums whenever you want
  • You can stop and start payments as you wish
  • You can switch to another scheme at any time without penalty
  • You do not need to retire to draw your stakeholder pension benefits. You can take benefits from age 55
  • At retirement, the option exists to take a quarter of the fund as a tax-free amount

The key point about SPs, as with any other pension, is to start contributing as early as possible and keep making contributions for as long as possible. That way your pension pot has time to build up and the investment returns compound through reinvestment over many years. The result should be a significant sum of money to invest when you retire.

If you die before age 75 and you have not started to take benefits from your pension the funds will normally be passed to your spouse or other elected beneficiary free of inheritance tax. Other tax charges may apply depending on the circumstances.

It is possible to continue past age 75 without taking benefits. If you die after age 75 your pension pot can still be passed to a nominated beneficiary free of inheritance tax, however if paid as a lump sum, tax at the beneficiaries marginal rate will apply (2022/23). If it is paid as an income to your spouse or dependant there will be no initial tax charge but any income paid would be subject to income tax.

A PENSION IS A LONG TERM INVESTMENT, THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.

PENSION ENQUIRY FORM

Your Address

Planning and Retirement

Employment

Existing Pension

Yes
No
Yes
No

Marketing Information

Sensitive Personal Data

We may need to collect sensitive personal data including information about your health, ethnic origin, or criminal prosecutions from third parties such as employers and credit reference agencies, fraud prevention agencies and other similar organisations in order to provide you with the services, for example where you require advice on annuity or protection products.

If you consent to us obtaining your sensitive personal data from third parties referred to above for the purpose of providing you with the services, and sharing it with third party providers and TenetConnect to obtain quotes on your behalf, for example where we are providing you with annuity or protection advice as part of our services, please tick this box.

Submit your Information

From time to time, we would like to contact you about our products and services which we think you might be interested in. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you.

Email
Telephone
Post
Yes please, I'd like to hear about offers and services.
No thanks, I don't want to hear about offers and services.
Please tick this box to confirm you have read and understood our privacy statement.

Company address: Premier Financial Planning (Cheadle) Ltd, 63 Cheadle Road, Cheadle Hulme, Stockport, Cheshire, SK8 5EU
T: 0161 482 8888 F: 0161 482 8899 Email: info@premiercheadle.com

Premier Financial Planning (Cheadle) Ltd is an appointed representative of TenetConnect Limited, which is authorised and regulated by the Financial Conduct Authority. TenetConnect Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 149826.

Premier Financial Planning (Cheadle) Ltd is registered in England and Wales under reference 06542655
Registered office address: 63 Cheadle Road, Cheadle, Cheshire, SK8 5EU

The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

© Copyright 2023 Adviser Pro. All Rights Reserved.

Design and Development by Adviser Pro