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Stakeholder Pension

The simple way for your clients to start a pension, with low monthly payments and charges as low as 0.55%.

The value of the stakeholder pension can go down as well as up and could be less than invested.

The Stakeholder Pension could be the ideal entry into retirement planning for clients who want to make low monthly payments and pay charges as low as 0.55%.

9 reasons to choose the Stakeholder Pension


  • Payment from as little as £20 (at any time).
  • Charges as low as 0.55% per annum and reduced when the fund value is £50,000 or greater. Some funds will have additional charges, please see our Fund Centre. The maximum total charges will not exceed 1% per year.
  • Clients can stop, start or change their payments as often as they like.
  • It’s a tax-efficient way for your client to save for retirement.
  • A variety of pension funds you can match to your client’s attitude to risk, including investments in money markets, bonds, shares and property.
  • Ability to switch funds as your client’s circumstances change.
  • For people who are employed, self-employed or un-employed.
  • Clients can pay into a plan on behalf of their children or grandchildren.
  • Offers pension freedom access.

Read the Stakeholder Pension key features

Figures at a glance


Criteria

Min/max

Detail

Notes

Age limits

Min age

0

Parents can set up a Stakeholder Pension for children aged under 18. Either the parent, or a third party (such as a grandparent) could pay into it.

Max age

74

Must start taking benefits before age 75.

Term

Min term

1 month

-

Payment limits

Min payment

£20

-

Min automatic annual increase

3%

Automatic increase will be at the Average Weekly Earnings index, with a minimum of

3% and a maximum of 15%.

Max automatic annual increase

15%


Charges


Type of charge

Charge

Notes

Annual fund charge

0.55% per annum

The percentage shown is the annual total.  This charge is taken on a monthly basis, by cancellation of units from the individual plan.

Large fund rebate

0.1% max

Reduces the amount of the Annual Fund Charge.  The amount of the discount depends on the value of the Stakeholder Pension. Please see the table below.

Additional yearly charge

% variable 

 

Some funds have an additional yearly charge – the amount will vary by fund, but the maximum total yearly charges will not exceed 1% per year.


Charging structure


Fund Size

Discount each year

Annual fund charge after discount

£0 - £49,999

0.00%

0.55%

£50,000 - £99,999

0.05%

0.50%

£100,000 and over

0.10%

0.45%

Who is the Stakeholder Pension suitable for?


  • Clients who want to start a pension plan with a small amount.
  • Clients who want to pay 0.55% or less of their fund’s value in charges each year.
  • Clients who want the flexibility to stop, start or change their payments as often as they like with no penalties.
  • Clients who qualify for tax relief on their pension payments. (Future basis and rates of tax may vary. Tax relief depend on individual circumstances.)
  • Clients under 75 years of age.
  • Clients who are permanent UK residents.
  • Clients who want access to pension freedoms.

Other considerations


You may also want to take these points into consideration:

  • Existing pension scheme arrangements
  • Required range of fund choices
  • State benefits
  • Attitude to risk

Helping you carry out your daily business


We’ve got plenty of online support for you as you run your day-to-day business.
You can perform key tasks online including:

  • getting policy and valuation information
  • viewing client documents
  • creating a client report
  • running a portfolio analysis
  • researching available funds
  • carrying out a fund switch

Log in to use these services

We also offer a range of additional support material and tools including:

 

Contact us

You can find contact details for each product area in the drop-down list:

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WA04050 05/2018