Stake holder pensions - UK advice online

Personal Finance Guides Online at:

Debt & Financial Advice - We Could Solve Your Financial Problems Today. Try Our Free Debt Test.

Exclusive Saab 0% Car Finance - Amazing low-rate finance on all new Saab models online - Web offers.

Incredible Rate Loans - Quick and easy exclusive access to the UK's cheaper loan rates.

The stake holder pension was launched in 2001 as a flexible alternative to other pension products, and was aimed at UK individuals with a lower than average earnings, or those on a low income. The pension can be set up with as little as twenty pounds, regular contributions are not compulsory, and the scheme is open to most people between the ages of eighteen and seventy-five.

Who is not entitled to take out a stakeholder pension?

Company directors who already pay into an occupational pension scheme, as well as individuals earning in excess of the upper earnings limit (£30,940 per annum in 2003/2004).

How does it differ to other pension schemes?

The main advantage of a stakeholder pension is that the pension provider is forbidden to charge the policy holder annual fees of more than one percent of the fund value. You are also exempt from charges should you want to stop paying into the pension for a while, or if you want to increase or decrease your monthly payments, or if you decide to transfer the fund from one provider to another. Another major benefit is the tax relief that policy holders receive. If, for example, your annual payment into the scheme is £3,600 (which is the maximum amount permitted per year), you only actually contribute £2,808 because you do not pay tax on it, and so the government will pay the remaining twenty-two percent. This would amount to £792 based on these calculations.

Where can I go to set up a stakeholder pension?

If the company you work for employs five or more people, it should already be making arrangements for you to pay into a scheme. Alternatively, banks and building societies provide pensions, as do investment and insurance companies.

What if I have a stakeholder pension through my employer, and I change my job?

Stakeholders are known as portable pensions. This means that you can take it with you when you leave a place of employment. You can decide whether you want to continue to make contributions into the fund, 'freeze' it, or you may prefer to transfer it to your new employer's pension scheme if they provide one.

Pink Fridge Online Magazine > dating online > marriage counselling > wedding planning guide > pregnancy symptoms & advice > how to work at home > car insurance advice > overcome depression > hairloss in women > weight loss > diet pills > skin care > tanning > baby gifts > planning a funeral > shopping for perfume > shopping for earrings > shopping for engagement rings > shopping for sunglasses > shopping for shoes > shopping for wedding favours > shopping for wine

© The Pink Fridge Online Magazine 2009 - Stake Holder Pensions