Stakeholder Pension schemes are secure, flexible, low cost and value for money pension schemes. They are ideal for people to save for retirement. XEvoke review
You can invest into a stakeholder pensions plan at any level up to the Inland Revenue permitted maximum of percentage of earnings or £3,600 gross per annum, whichever the greater, using your best year's earnings from the last five tax years where you were not a member of a company managed funds pension scheme.
You use your own money to build up your pension fund. Your Stakeholder Pension Scheme will put your contributions into investments such as stocks and shares for you.
At retirement, up to 25% of the pension fund value can be taken as tax-free cash and the balance used to provide an income. Benefits can be taken in many ways and you can choose what is best to suit their circumstances.
The Government believes that the best way for you to have a secure retirement is to use the basic state Retirement Pension as a start. If you want to increase your pension for when you retire, you need to think about the best additional or second pension option for you. The earlier you start paying into pensions and the more you pay in, the higher your pension will be.
life insurance If you have not yet made any arrangements for a second pension, a stakeholder pension may be the best option for you. But whether a stakeholder pension is right for you will depend on your circumstances. If you have made some arrangements for a second pension, you should think about whether the basic state Retirement Pension and any additional pension, together with any arrangements you have already made, will be enough to meet your needs at retirement.
Personal Pension Transfer
Whilst you can transfer your pension into any UK stakeholder pension with no initial charge, there are still a number of factors that need to be considered. If you are considering transferring your pension away from your current personal pension or stakeholder pension provider, the main factors you have to consider, is the possible benefits of transferring your pension against the associated costs of moving, including any penalties you may incur by your existing pension provider.