You are eligible if you are under 75 years of age, in employment (but not contributing to an Occupational or Company pension scheme unless you earn less than £30,000 per annum), a fixed contract worker, self-employed or not working but can afford to contribute to a pension.
Your retirement fund is built up by making regular or occasional contributions. If you want to contribute up to a gross amount of £3,600 per annum (£2,808 after tax relief), there are no age or earnings restrictions up to the age of 75. Above this amount the Government has set limits based on age and earnings. Individual providers can give details of the current limits. To build an adequate retirement fund you should start early.
Plus Points: In addition to the various benefits of a Personal Pension the Stakeholder Pension must meet Government standards on costs and flexibility with contributions. Charges cannot exceed 1% of the value of the retirement fund annually. Contributions may be occasional or regular with a minimum of £20.
Stakeholder Pensions are Money Purchase Schemes and as such your pension depends on the contributions made towards your retirement fund and the fund's investment performance. The funds investment performance depends on the amount of risk you are prepared to accept. Upon retirement, your fund is used to purchase an Annuity that provides you with a pension income.
Stakeholder Pensions can also be used to contract out of the State Earnings Related Pension Scheme (SERPS).
General
Personal
Stakeholder
Occupational or Company
AVCs
Annunities
State Pension Scheme
