Stakeholder Pensions UK
How to get Stakeholder Pensions
Not necessarily as easy as it sounds. Because the charges are so low and they’re not making much money from them many of the pension providers don’t seem to want to deal direct with the public.
The obvious way would be to go via an IFA. We can put you in contact with one who shouldn’t have to charge you any commision for getting you a Stakeholder as the provider will probably be paying them separately.
If so this won’t subtly come out of your pension fund in “charges” or whatever – unlike the old tricks with personal pensions.
This commission is being paid to IFAs because some of the providers are prepared to take a short-term loss to gain long-term market share.
See Find me an IFA
Stakeholder Pensions Summary
- They aren’t compulsory to join
- They don’t have initial charges
- Annual charges are supposed to be a max of 1% of the pension fund’s value
- They’re supposedly aimed at people on “moderate earnings” i.e. £9,500 to £21,600 pa
- They are basically a cheaper type of personal pension
- You can have more than one Stakeholder pension
- These pensions are a good savings route for the self employed
- You can only have a Stakeholder in addition to an occupational pension scheme if you earn less than £30,000 pa (approx)
- Don’t leave an Occupational Pension plan to start any type of Stakeholder Pension without taking proper advice