Help on stakeholder rules

Tipp-e

Hi,

I currently have a stakeholder pension with Scottish Widows which I put £100 a month into.

My employer wants to be able to contribute to a pension scheme for me and for arguments sake lets say this amount is £200.

Will I be able to direct my employer to deposit this money directly into my stakeholder?

If so, will I also get tax relief on this amount?

Thanks!

EdInvestor

Tipp-e wrote:

I currently have a stakeholder pension with Scottish Widows which I put £100 a month into.My employer wants to be able to contribute to a pension scheme for me ...Will I be able to direct my employer to deposit this money directly into my stakeholder?

You can ask him to do so - I don't think you can direct him He may have another pension scheme set up which you will have to join to get the money.

If so, will I also get tax relief on this amount?

Yes, this will be the case either way. But don't forget in your long term planning that you do have to pay tax on the pension eventually when it gets paid out: the tax liability mainly is just deferrred, not abolished altogether,unfortunately

claretmatt

Tipp-e wrote:

Hi,

I currently have a stakeholder pension with Scottish Widows which I put £100 a month into.

My employer wants to be able to contribute to a pension scheme for me and for arguments sake lets say this amount is £200.

Will I be able to direct my employer to deposit this money directly into my stakeholder?

If so, will I also get tax relief on this amount?

Thanks!

I'm sure that it's perfectly reasonable for you to ask your employer to pay into your current scheme. It will only be an additional application and an extra direct debit that's needed.

If your employer does contribute then they will received the tax relief not you. So it will only be worth £200 and not £256 if it was paid personally

Tipp-e

ah, interesting. How will Scottish widows know that it is my employer paying in and not me? I guess that I have to tell them?

dunstonh

The employer contributions will be collected as employer contributions and not employee. There will an employer direct debit in place to cover that chunk.

That assumes that the scot widows pension will accept employer contributions.

Tipp-e

Thanks for all your replies.