Stakeholder Pensions, Stakeholder Pensions investments

Stakeholder Pensions

Stakeholder Pensions

This was introduced in April 2001 with the aim of encouraging more people to save for their own retirement. To reach as wider audience as possible, stakeholder schemes are intended to be flexible and easy to understand.

They operate within a standard frame work laid down by the government.

A stakeholder pension is effectively the same as a personal pension but with a cap on charges. The cap has risen to 1.5% but many providers still offer a 1% charge.

Stakeholder pensions are extremely flexible and a few of its key points are listed:

You can stop and then restart payments with no penalty

The pension can be transferred from on provider to another with no penalty

Pension is portable and can be taken with you if you change jobs

Payments can be made even if you are not working

Payments can be made for children or grandchildren to give them a head-start

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