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Stakeholder Pensions

A few features of Stakeholder & Non Stakeholder pensions

Personal and Stakeholder Pensions are common types of ‘registered pension schemes’. A registered pension scheme allows the member to obtain tax relief on contributions into the scheme and tax free growth of the fund.

The value of the investment can go down as well as up and you may not get back as much as you put in

A personal pension is a privately funded pension plan. A stakeholder pension is a more tightly regulated personal pension plan particularly over charging levels.

stakeholder pension has the following constraints on the pension provider:

  •  a minimum payment cannot be set higher than £20, whether for regular or one-off contributions.
  • the management charges are set at an annual maximum of 1.5% for the first ten years and then 1% of the stakeholder owner’s fund thereafter.
  • there must be no penalties when the owner stops contributing or transfers the fund elsewhere.

Non Stakeholder Pensions

Stakeholder schemes are not ideal if you want to invest in a wider range of funds. If you are happy to pay a slightly higher charge, you should consider taking out a non-stakeholder personal pension.


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