Stake Holder Pensions

Ladywriter1968

I was considering taking out a stake holder pension, I am currently 42 years old. But not really sure if it would be worth my while or not.

So wanted your opinions of this? Whether you think it would be worth my while or not?

yelf

that depends really

dunstonh

possibly a personal pension would be more cost effective given your age but it depends on your contribution and how you intend to buy it.

Ladywriter1968

Ok, the most I could afford at the moment monthly for a pension would be £20. to give you an idea. It mentions about £100pm but no way I could afford that. Do you have to be working then to have a personal pension?

dunstonh

With that contribution, it would be stakeholder territory. PPPs are for higher contributions and values.

Do you have to be working then to have a personal pension?

no. Non earners can pay up to £3600 a year into a pension.

Realistically and given your age, is £20 going to make a difference? Indeed, it could potentially do more damage than good.

Ladywriter1968

dunstonh wrote: »

With that contribution, it would be stakeholder territory. PPPs are for higher contributions and values.



no. Non earners can pay up to £3600 a year into a pension.

Realistically and given your age, is £20 going to make a difference? Indeed, it could potentially do more damage than good.

Thanks for your advice, I guess its not worth me bothering then.

dunstonh

It depends on what your savings/investments and income will be in retirement. Small contributions could bring in an income which just erodes pension credits. Its not quite a 1:1 reduction and some saving/pension can be beneficial. However, you just need to be careful you dont get into that window where you lose pension credit but dont have enough other money to make up for it.