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Stakeholder pensions as investment
dunstonh
Posts: 120,009 Forumite
I know there is the pension section but I also know that many people invest in pensions as an investment product rather than a retirement product.
The Govt announced last week that Stakeholder pensions commenced before April 2005 will retain their 1% or lower annual management charge after this date. After 2005, new stakeholders will have a 1.5% or lower annual management charge allowed for the first 10 years.
So, if you intend to purchase a stakeholder, do it before April 2005.
For those that invest annually as a single premium, you should investigate switching to annual premiums as these will retain the 1.0 whereas one off annual premiums will not.
Those that are in the position to save for their children should also look at the stakeholder as the minimum contribution is £15.60 as direct debit (grossed up to £20.00). Do it monthly before April and you get the 1.0 charge cap.
Obviously, the same applies to those that use stakeholder pensions as a retirement vehicle as well as those that use it as an investment vehicle.
The Govt announced last week that Stakeholder pensions commenced before April 2005 will retain their 1% or lower annual management charge after this date. After 2005, new stakeholders will have a 1.5% or lower annual management charge allowed for the first 10 years.
So, if you intend to purchase a stakeholder, do it before April 2005.
For those that invest annually as a single premium, you should investigate switching to annual premiums as these will retain the 1.0 whereas one off annual premiums will not.
Those that are in the position to save for their children should also look at the stakeholder as the minimum contribution is £15.60 as direct debit (grossed up to £20.00). Do it monthly before April and you get the 1.0 charge cap.
Obviously, the same applies to those that use stakeholder pensions as a retirement vehicle as well as those that use it as an investment vehicle.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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Comments
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You can have as many stakeholder pensions as you wish,deposit £25 in all the Mutual Insurance company,s and wait for then to De-Mutualise and get £500 for loss of voting rights.It,s the Bargain of the Decade, NO lose situation,as you get 25% from Gorden Brown also.
Capped at 1% annual charge and a 3% growth.
To late for Stanard Life,but go for Royal Liver,Weslyan,Liverpool Victoria,NFU, etc0
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