For those of you who are thinking about planning for your retirement, you will need to do a bit of research on pensions to find the best way to save for your future retirement. This article is about stakeholder pensions and will explain a bit about them and how they work.
So first of all what is a stakeholder pension? Well it is not a new kind of pension so to speak, but it is a personal pension which has a set of conditions under which it must operate in order to be called a stakeholder pension. It is not limited to being a personal pension as it can also be a set of conditions which applies to a money purchase occupational scheme.
The purpose of the set of conditions is to make the pension simple, easy and good value for money. So what are the set of conditions that apply to stakeholder pensions then? Well here are the minimum standards that apply to it:
1. The charges must be low at around 1% of the fund invested each year.
2. It must be designed to be simple which is done by having a standard investment option so that you do not have to choose the investments yourself.
3. It must be portable, meaning that you can transfer the stakeholder pension on to a different pension which can be another stakeholder pension or another personal pension. Also if you do this you would not be penalised for transferring it.
4. The pension provider must keep you informed of any changes in the charges you have to pay for it by letting you know one month before the changes take place. They must also send you a statement at least once a year so you are kept up to date with your account.
5. The minimum contribution must be £20 and you must not be obliged to pay in every month unless you wish to do so.
So what are the advantages of a stakeholder pension? The main advantages are that it has low charges, that it has tax advantages, that they are easy to understand and relatively simple, are generally speaking good value for money and that you can transfer it to another pension without incurring any fees.
Are there any disadvantages to it? Well the main disadvantages are that the pension amount you will receive in the future is not predictable, that there is an investment risk and that there is no guarantee that your stakeholder pension will keep pace with price inflation.
Miguel Poza runs a website about personal finance where you can find out about many free money saving tips and read other money related articles which will help you sort out your finances. You can check it out at http://www.moneyhelper.co.uk
- Related Videos
- Related Articles
- Ask / Related Q&A
- Three Ways To Obtain Business Finance Money
- Investing Saving Finance Money-make A Fortune With Your Investments
- Finance, Money, and Investing Information
- Business Finance: Money to Set you Free Financially
- Cheap Personal Finance: Money at Low Rate for Personal Needs
- 4 Things You Can Do to Control Personal Finance, and not Have it Control You
- Business Car Finance: Invest in your Commercial Vehicle
- Funds Through Development Finance Companies: Advantages
Bad Credit Auto Refinance –Make It Possible Online And Save Some Amount Of Money
By: Carl Fullar01 | 31/12/2009Refinancing a car might a best idea if you are planning to save amore amount of money, you can save for sure.
Low Interest Unsecured Personal Loan-Improved Choice Online
By: Robart Watson | 31/12/2009It is very much trustable and risk free, you can grab any amount of money by just following given links.
High risk Personal Loans –No Credit Verification for Big Money
By: Robart Watson | 31/12/2009Trust on a online lender while financial crisis, you would be supplied with enough money by online lender if you are applying through them.
Debt Settlement Advice – Important Things To Consider Before Getting A Debt Settlement
By: Matt Couch | 31/12/2009Debt settlement advice is the most beneficial solution to get out of financial obligations.
Is Real Estate Investing In Distressed Property Worth the Trouble?
By: Tasha Gill | 31/12/2009Go Invest Wisely brings you instruction on how to take advantage of distressed property investment opportunities. Many People feel that investing in distressed properties isn't worth the trouble. But what does Go Invest Wisely know that that others don't?
Experienced Debt Relief Programs – How To Locate Established Debt Relief Services To Eliminate Debt
By: Matt Couch | 31/12/2009Innumerable people in the United States have been facing the problem of paying their credit card bills.
Debt Relief Programs – How To Capitalize On The Recession And Eliminate Credit Card Debt
By: Matt Couch | 31/12/2009People in the west are moving more and more towards debt relief programs.
Do You Have Over $10,000 In Credit Card Debt – If So You Can Legally Eliminate 60%
By: Matt Couch | 31/12/2009It may sound ironic, but being in too much debt, owing over $10,000 on your plastic could actually be to your benefit.
What Are Anti Virus Software, Anti Spyware Software
By: Miguel Poza | 22/12/2006 | ComputersNow that most people use the internet these days, it is a very good idea to make sure that you have good quality computer security software installed and protecting your computer. Anti virus software, anti spyware software and having a hardware or software firewall are now essential for everyone using...
Ways To Save Money On Your Tax Bill Each Year
By: Miguel Poza | 04/12/2006 | FinanceNo one wants to pay too much tax and if you are looking for some ways you can reduce the amount of tax you have to pay the taxman each year then take a look at the list of tax saving ideas compiled below:
Things You Need To Know About Inheritance Tax & Some Ways To Reduce It
By: Miguel Poza | 04/12/2006 | FinanceInheritance tax is a tax that you have to pay when you die which comes out of the financial estate that you leave behind. You only pay inheritance tax over a certain threshold. The good thing about inheritance tax is that it can be greatly reduced if you think about it in advance and prepare your financial affairs so that you end up paying less inheritance tax.
Why You Should Make A Will & Some Important Things To Consider When Making One
By: Miguel Poza | 04/12/2006 | FinanceDid you know that about 70 per cent of the UK population have not made a will? If you are one of these people then you really need to look into making a will because if you die without having made one then you will have no say in who inherits your estate.
How To Save Money On Your Gas & Water Bills Each Year
By: Miguel Poza | 02/12/2006 | FinanceAs the cost of gas and water keeps going up, it is a good idea to see what you can do to help reduce your gas and water bills. First of all here some ways of reducing your gas bill each year:
10 Ways To Save Energy And Save Money On Your Electricity Bills For Your Home
By: Miguel Poza | 02/12/2006 | FinanceThere are several different ways you can save energy on your home electricity usage which will also reduces the money you spend on your electricity bills and helps reduce carbon emissions to the environment.
What You Need To Know About Health Insurance
By: Miguel Poza | 31/10/2006 | AdviceWe all hope to stay well and healthy all the time, but we all know that we are going to be sick or may even be unfortunate and have an accident at some point in our lives.
What You Need To Know About Stakeholder Pensions
By: Miguel Poza | 20/10/2006 | FinanceFor those of you who are thinking about planning for your retirement, you will need to do a bit of research on pensions to find the best way to save for your future retirement. This article is about stakeholder pensions and will explain a bit about them and how they work.