Stakeholder pensions

• Low charges mean that providers may not be able to afford to give you free advice about the pensions they offer, and if they are right for you. You may have to see a Specialist Pensions Adviser or contact an Independent Financial Adviser if you do want advice
• There may be a limited investment choice

More information on Stakeholder Pensions:

• How much can I invest?
• How do you take out a Stakeholder Pension?
• What if I already have a Personal Pension?

How much can I invest?
The government has set limits on the amount you can put in. This is because you get tax relief on the amount you put into the plan and because there is no income tax or capital gains tax paid inside the fund that you invest in. As from April 2005 - if government proposals are turned into law - these restrictions will no longer apply.

The minimum amount you can invest each month is £20. Each year everyone - including non-earners - can invest up to £3,600 including tax relief. However, if you have sufficient earnings and are not a member of a Company Pension scheme you may be able to pay in more - a set percentage of your earnings - depending on your age.

How do you take out a Stakeholder Pension?

• You can usually approach the pension provider directly, you'll often find their adverts in newspapers or magazines
• You can apply to companies directly through the internet
• You can speak to a Specialist Pensions Adviser. You'll find details of your local ones in the Yellow Pages
• You can ask an Independent Financial Adviser. You'll find details of your local ones in the Yellow Pages (www.yell.co.uk), or by visiting www.unbiased.co.uk

If your employers do not run their own Company Pension and have five or more employees, then they must offer you a Stakeholder Pension.

What if I already have a Personal Pension?
If you have a Personal Pension, you can switch it to a Stakeholder Pension to take advantage of the lower charges. However, check first if you will be charged a penalty, if your investment choice will be restricted and what your current charges are. Many Personal Pension providers have brought their charges into line with those of Stakeholder Pensions so you may not be better off.