Simple but flexible
Help your clients save for their retirement in a tax-efficient way. Payments can be as little as £20, paid at any time. Charges are as low as 0.55% per year and never exceed 1%. This plan gives your clients a simple way to start their pension planning.
Your clients can invest regularly or make one-off payments - payments of as little as £20 - at any time
A variety of pension funds you can match to your client’s attitude to risk, whilst staying within the stakeholder maximum 1% charge cap
Your clients can stop, start or change payments with no penalties
Why Stakeholder Pension?
A Stakeholder Pension is a simple way to invest for the future:
- It’s a tax-efficient way for your client to save for retirement
- Payments can be as little as £20, paid at any time. Clients can stop, start or change their payments as often as they like
- Charges from 0.55% per year which reduce if the fund value reaches £50,000 or greater. Some funds will have additional charges - visit our Investment Centre for details - but the total charge will never be more than 1% per year
- Choice of funds you can match to your client’s attitude to risk, including money market, bonds, shares and property. And clients can switch funds at any time
- Suits people who are employed, self-employed or unemployed. And clients can pay into a plan on behalf of their children or grandchildren.
- Offers access to flexi-access drawdown and other pension freedoms
The value of a Stakeholder Pension can go down as well as up and could be lower than has been invested.
Facts and figures
No minimum age, maximum age 74. Parents can set up a Stakeholder for children under 18 and either the parent or a third party such as a grandparent can pay into it. Benefits must start to be taken before age 75.
Minimum term – 1 month.
- Minimum payment £20 at any time
- Automatic increases in regular payments - at the rate of the Average Earnings Index, with a minimum of 3% per year and a maximum of 15%
- Annual fund charge - 0.55% per year, taken monthly by cancellation of units from the plan
- Large fund discount - up to 0.1%. This reduces the annual fund charge as shown in the Charging Structure table
- Additional yearly charge - applies to certain funds and the amount will vary by fund, but the overall total yearly charge cannot exceed 1%
Large fund discount
Annual fund charge
£0 - £49,999
£50,000 - £99,999
£100,000 and over
The Stakeholder Pension could suit a range of clients. For example:
- Clients who want to start a pension plan with small payments
- Clients who want to pay an annual fund charge of 0.55% or less of their fund's value each year, and don't want the overall stakeholder maximum product charge to exceed 1%
- Clients who want the flexibility to stop, start or change their payments as often as they like with no penalties
- Clients who qualify for tax relief on their pension payments (Please note tax rules may change in the future and the value of tax relief depends on individual circumstances)
- Clients under 75 who are permanent UK residents
- Clients looking for access to pension freedoms
You may also want to take these points into consideration:
- Existing pension scheme arrangements
- Required range of fund choices
- State benefits
- Attitude to risk
Helping you carry out your daily business
We’ve got plenty of online support for you as you run your day-to-day business.
You can perform key tasks online including:
- Getting policy and valuation information
- Viewing client documents
- Creating a client report
- Running a portfolio analysis
- Researching available funds
- Carrying out a fund switch
We also offer a range of additional support material and tools including:
Key documents and resources
This area holds all the information about our funds, including how they're managed and invested. You'll also find information about our Discretionary Investment Managers.
As a well-known global asset manager with broad and deep expertise across all major asset classes, we're able to give your clients the confidence they're looking for.
Read our range of articles on retirement products and things to consider when pension planning.
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