Stakeholder Pensions

A stakeholder pension plan is a defined contribution arrangement that will provide an income in retirement.

The policyholder contributes to the fund and the money is invested to build it up and the pension payable on retirement is dependent on the amount of money paid into the scheme, the performance of the fund and the annuity rate at the point of retirement.

Stakeholder pension schemes are subject to a minimum set of requirements laid down by the government to help those wishing to invest modestly into their pension.

The flexibility for the policyholder to increase/decrease contributions, take a break for a while or switching funds make stakeholder pensions a useful option. You can of course transfer it to a new employer’s scheme at no charge.