Recent surveys suggest that the introduction of Stakeholder Pensions has meant that less people are interested in Personal Pension Plans and are now seeking an increasing amount of pension advice on Stakeholder Pensions. So, what are the advantages of Stakeholder Pensions and how do you know if they will be the best type of pension for you? To find out more visit http://www.bbc.co.uk/news/business-your-money-12150443
What are Stakeholder Pensions?
Introduced by the government in 2001, stakeholder pensions are personal pension arrangements aimed at employees on low to middle incomes (between £10,000 and 20,000 per annum) as a means of encouraging saving for retirement. Any company with more than five employees is obliged, by law, to provide a Stakeholder Pension Scheme.
What are the benefits of Stakeholder Pensions?Introduced by the government in 2001, stakeholder pensions are personal pension arrangements aimed at employees on low to middle incomes (between £10,000 and 20,000 per annum) as a means of encouraging saving for retirement. Any company with more than five employees is obliged, by law, to provide a Stakeholder Pension Scheme.
Some of the main benefits to be enjoyed from choosing a Stakeholder Pension include:
· Taking breaks from payments without being penalised
· Suited to any UK resident under the age of 75 (even if you are unemployed)
· A cheaper and more flexible pension scheme option compared to PPPs (the maximum charge is set at 1.5% for the first ten years and 1% thereafter)
- Penalty free transferral of benefits
- A maximum of 10% of the premium can be used for life assurance
- Your employer also being able to make payments into a Stakeholder plan for your benefit
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