Stakeholder Pension Schemes
A stakeholder pension scheme is a type of personal pension plan. In other words, it is a money purchase arrangement designed to provide a lump sum and income in retirement. Like a personal pension plan, it is available to any UK resident under the age of 75 and can be bought from insurance companies, high street banks, investment firms and some retailers.
A stakeholder pension scheme has been designed to incorporate a set of minimum standards laid down by the Government. These include:
|a charging structure capped at 1.5% of the fund each year for the first 10 years and 1% a year thereafter;|
|no penalties on increasing, decreasing, stopping and restarting contributions;|
|no penalties on transferring the fund to another pension arrangement; and|
|a minimum contribution of £20|