Stakeholder summary
If you just want a quick overview of what a stakeholder pension plan is, look no further!
- Tax relief on contributions at your highest marginal rate
- A money purchase scheme
- Minimum contribution of not more than £20
- Permissable contribution limit of up to £3,600 pa gross (without evidence of earnings) or 100% of earnings. (subject to the Annual and Lifetime allowance)
- An annual management charge taken from the fund/s of not more than 1.5% of the plan value for the first 10 years and 1.0% thereafter. There are no up front charges.
- You are free to:
- Stop, increase, decrease or restart your pension contributions at any time without penalty.
- Transfer your money to another stakeholder scheme without penalty.
The only exception to this is the facility for Providers to levy a Market Value Adjuster (MVA) on With Profit funds following prolonged poor market conditions.
- All plans will have a default investment choice, this is designed to help make purchasing a Stakeholder pension plan easier, but it doesn’t guarantee the default fund will necessarily be the right one for you, we recommend advice be sought.