Stakeholder pension questions?

love2learn

Hi,

I have a few questions about Stakeholder pensions.

(1) Can a transfer be made to one from another pensions? (My dad has a small pension fund of around £50,000)

(2) His emplyer doesn't offer a stake holder pension, but I notice some banks do. How exactly do they achieve the tax benefit from them? (i.e for every £78 paid in £100 goes to the pension pot) Does the bank have a way of deducting the money from the employees pay before it gets taxed?

(3) I'm not looking for specific advise, but can someone in the know list some stakeholder pension providers with a proven track record for good returns on balanced/cautious type funds?

Thanks to anyone, who's kind enough to take thier time and reply!

jem16

love2learn wrote: »

Hi,

I have a few questions about Stakeholder pensions.

(1) Can a transfer be made to one from another pensions? (My dad has a small pension fund of around £50,000)

Yes it can.

(2) His emplyer doesn't offer a stake holder pension, but I notice some banks do. How exactly do they achieve the tax benefit from them? (i.e for every £78 paid in £100 goes to the pension pot) Does the bank have a way of deducting the money from the employees pay before it gets taxed?

The pension company claim the tax from HMRC. You simply give them the net amount. Tax relief is now 20% for basic rate taxpayers. So you would pay in £80 and the pension company claim the other £20 from HMRC.

dunstonh

(2) His emplyer doesn't offer a stake holder pension, but I notice some banks do.

Dont buy from a bank.

(3) I'm not looking for specific advise, but can someone in the know list some stakeholder pension providers with a proven track record for good returns on balanced/cautious type funds?

It doesnt work that way. There are other 2000 funds available and not all these funds are available with different providers. Also, you have personal pensions to consider (can rule out SIPP as you wouldnt be asking these questions if a SIPP was right for you). The personal pension could be cheaper and offer better investment choice. It also depends on where and how you are going to buy the pension; Execution only, IFA, tied sales rep, direct to provider etc.